First Occupation License | Fiscal Residence

GLOSSARY OF CONVEYANCING IN SPAIN > Index

Buying and selling property in Spain often means having to turn your hand to a wide range of things.
Each of them uses terms and abbreviations that can be difficult to understand.
We hope this glossary will give some plain English explanations to some of the most common
conveyancing terms.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Please, select the first letter of the word from the list above to jump to appropriate section of the glossary

FIRST OCCUPATION LICENSE (LICENCIA DE PRIMERA OCUPACIÓN): It is a license to occupy the dwelling. It is a paper, which proves that the conditions of the building license (Licencia de Edificación) have been observed. The purpose of this license is to check that the building has been constructed in accordance with the building license and to ensure the applicant registers the property with the tax office. By Law, utilities cannot be connected without a first occupation license.

FISCAL RESIDENCE: This determines that the individual spends at least 183 actual days a year residing in Spain, or that the main nucleus or base of their economic activities or interests is in Spain. At the same time, it will be presumed, unless proved otherwise, that the contributor has their habitual residence in Spain and, in accordance to previous criteria, that any non-separated spouse or underage children dependant on the individual also have their habitual residence in Spain.
The immediate effect of a lack of Fiscal Residence is the obligation on the part of a purchaser to retain and pay to the State Taxation Agency (Agencia Tributaria Estatal) 5% of the price of the sale of a property in taxes (either VAT (IVA) or ITP). In this specific case Fiscal Residence is not assumed, but rather it is the responsibility of the individual to demonstrate it in order to obtain a certificate, which proves this, thereby exonerating them from the tax.

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