Problems with Jointly Owned Property in Spain

That problem with the jointly owned property in Spain.

Let me tell you…

According to provisions 400 et seq of the Civil Code: “No co-owner is obliged to remain in the community, each of them may at any time divide the common thing”

If the shared property to be divided is indivisible, either because of physical indivisibility or because after the division it would be useless for the purpose for which it is intended; an economic division will be the way to go. Either by (1) one of the co-owners being awarded with full ownership in exchange of payment to rest of owners or (2) the property being sold and price being apportioned among you all, according to your quotas.

Procedure

This division can be performed by yourselves as co-owners, by mediators or arbitrators chosen by you all or through judicial action.

1) By you all, the owners: through a Notary deed for division. Unanimous consent is needed

2) By mediators/arbitrators chosen by you all

3) Through judicial action which can end in the public auction of the property “actio communi dividundo”

Related taxes

a) Stamp Duty: usually 1% of the tax value of the house (depending on the region in which the property is found).
b) Plusvalia: local tax on value increase of urban land
c) Income tax (for the seller) difference between acquisition and sale price must be calculated to find out on capital gain or loss

What if the joint ownership being divided has a mortgage?

In these cases, authorization of lender is required

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