Real estate purchase and sale

From the buyer: - Valid national identity document. - Declaration of source of funds. - Bank details if financing is involved. From the seller: - Title deed. - Current survey plan (where applicable). - Most recent Real Estate Tax (Contribución Inmobiliaria) receipt. - Certificate of no outstanding common expenses if the property is under condominium regime.

Depending on the transaction, the following are obtained: - General Registry Office (DGR): mortgages, attachments, injunctions and annotations. - Social Security Bank (BPS): standard and/or special certificate when construction or improvements have been declared, construction company work is involved, or building contributions are pending. - Tax Authority (DGI): certificate when the seller is a taxpayer (IRAE, VAT or personal income tax, as applicable). - Departmental Government: certificate of no outstanding Real Estate Tax (Contribución Inmobiliaria) and other local taxes (Tributo Domiciliario, Tasa General, etc.) as applicable. - Common expenses: certificate issued by the building management.

The Real Estate Transfer Tax (ITP) applies to the transaction at a rate of 2% payable by the buyer and 2% by the seller, totalling 4% on the taxable base (not on the purchase price). Each party pays their share, unless otherwise agreed. The taxable base is not the sale price. The ITP is calculated on the real value of the property as determined by the Dirección Nacional de Catastro, adjusted by the applicable update coefficient. Total costs (professional fees including contributions and VAT, ITP, certificates, registration and, where applicable, real estate agent commission) typically range between 5% and 8% of the transaction value.

A typical real estate transaction closes in 30 to 60 days, depending on the deal, the complexity of the title and the speed of the relevant authorities.

If you're about to buy or sell, reach out to us. We'll analyse your case and explain the scope, timelines and costs.