Tax Consequences of Divorce and Property Distribution in Spain

Q. I am in the process of going through a divorce in the UK and we have a property in Spain. What are tax implications of transferring the property in Spain into one of our names only, as per the divorce agreement?

A. The most tax efficient manner to achieve this outcome is to draft a deed in a public notary’s office to bring a formal end to the co-ownership of the property and by which the co-owners can expressly confer the entire ownership to either spouse, with the other partner or spouse paying the equivalent amount in monetary terms. In those cases involving the enforcement of divorce agreements, the amount of the financial compensation for the interest in the property will be as stated in the divorce agreement.

Documentation Tax

The tax applicable to such operations is known as AJD (Actos Jurídicos Documentados) and is equal to 1.5% of the value of the property in the Valencia region, for example. In tax terms therefore, this is a great deal preferable to the outright purchase by one partner or spouse of the interest belonging to the other partner or spouse, which would result in the payment of a 10% tax on the value of the part of the property purchased.

Mortgages

It should be remembered that the dissolution of a co-ownership can only be carried-out between co-owners of a property and may not involve third parties. Also, in those cases where there is still a mortgage on the property, the co-owner that is relinquishing their interest must take great care to obtain the approval of the bank that has conferred the mortgage. For if the bank does not approve the assumption by one co-owner of responsibility for repayment of the entire mortgage the spouse or partner relinquishing their interest in the property may find themselves with no property but a continuing obligation to repay the bank.

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49 Lawyers Offering Divorce Services in Spain

Testimonials for our Divorce service
  • Eamonn Gomez
    Eamonn Gomez, Madrid

    Francisco was extremely helpful, he couldn't have done more.


    Sep 07, 2019
  • Tina Shiels
    Tina Shiels, Fuengirola

    Alvaro was very helpful and went above and beyond to try to help me in my situation as I needed it to happen as fast as possible.


    Even whilst he was on holiday he was in touch and made things happen. would definitely recommend!


    Sep 06, 2019
  • Navdeep Singh
    Navdeep Singh, Lisbon

    Very satisfied with the service provided by Simone


    Aug 07, 2019
  • Marion Brennan
    Marion Brennan, Alicante

    At every stage of our family case, Jose Antonio has been knowledgeable and thorough, very professional while remaining kind and supportive and ensured that we took the right steps for a positive outcome.


    I would highly recommend Jose Antonio for legal representation.


    Jun 29, 2019
  • Amir
    Amir, Lisbon

    Our lawyer Simone is a very nice person who gave us personal attention like a family.


    Start to finish she provided the best service. Very happy with the job done, thx a lot!


    May 31, 2019
  • Robert Cunningham
    Robert Cunningham, Mallorca

    Rosa was absolutely first class. She made a very difficult time in our lives a lot easier and for that I could not be more grateful. Thank you Rosa


    May 20, 2019
  • Keisha
    Keisha, Valencia

    Inmaculada was professional and also demonstrated compassion and understanding during this difficult period in my life.


    Apr 03, 2019
  • Wayne
    Wayne, Valencia

    Francisca was very informative and helpful. She handled my divorce professionally and made it easy for me throughout the process.


    Highly recommend and reasonable fees. Thank you, Francisca!


    Mar 16, 2019
  • Wayne Cherry
    Wayne Cherry, London, England

    Francisca was very informative and attentive to all of my inquiries and concerns. I would definitely be going back to her if needing her services again and would recommend her brilliant services.


    Mar 09, 2019
  • Candy
    Candy, Cadiz

    Francisco was very responsive, supportive and understanding.


    Unfortunately, I had to use another lawyer who has helped me in another case.


    Feb 11, 2019
  • Colin Wilson
    Colin Wilson, Australia

    Overall it was great. Rosa always answered all questions asked and provided clear, concise and well explained answers.


    When there was a delay in responding she did offer an apology which was appreciated. Rosa always instilled a sense of confidence that she knew exactly what was going on, what I was asking, and what the applicable law was.


    When not a Spanish local and dealing with her remotely, this provided great comfort in a sensitive matter.


    Oct 30, 2018
  • Julie Smith
    Julie Smith, Torrellano

    I can't compliment my solicitor enough.


    From our initial meeting right through to my ultimate divorce (with no unpleasant surprises the entire duration of the entire process), he immediately responded to my many enquiries, always had mine and my daughter's best interests at the forefront of any considerations and was well worth every penny of his extremely reasonable fee.


    Excellent value for money, totally approachable and very professional and understanding. I highly recommend him and will continue to retain his services for other matters in the future.


    Apr 20, 2018
  • Robert Davies
    Robert Davies, Mallorca

    Very supportive and clear on producing a suitable divorce settlement.


    Efficient, understanding and professional.


    Mar 12, 2018
  • D slocombe
    D slocombe, Spain

    Jose is very friendly and understanding.


    I am very satisfied and I would you use the same lawyer again in the future.


    May 19, 2017
  • Louise Kirby
    Louise Kirby, Alicante

    Jose Antonio is a very dedicated lawyer. He ensures he has a deep understanding of the case and provides excellent advise on a range of issues.


    He has often replied to queries out of hours and works hard to provide the best outcome for his clients.


    His service is outstanding and I would highly recommend him.


    Feb 15, 2017
  • Stanley Jones
    Stanley Jones, Llano del Camello

    I am very satisfied with Oliver, he was very helpful and always happy to assist.


    I would definitely use the same lawyer again in the future.


    Jan 17, 2017
  • Malcolm John Lewis
    Malcolm John Lewis, Germany

    Totally professional and helpful in every way, helped to solve problems that arose and so would recommend to anyone.


    Dec 15, 2016
  • Raquel Flores Camua
    Raquel Flores Camua, Abbotsford

    Rossana was excellent in all these qualities – responsiveness, understanding, value for money, ability to explain and provide appropriate legal solutions, approachability and professionalism.


    Couldn’t ask for more, extremely satisfied with her service and sincere attention to my interests.


    Dec 12, 2016
  • Centa P Cronin
    Centa P Cronin, Fuerteventura

    Beatriz was very friendly…easy to engage with….efficient service.


    She couldn’t have done more.


    Nov 26, 2016
  • CW
    CW, Ibiza

    Very knowledgeable and supportive from the outset.


    Made to feel very comfortable and nothing was too much trouble. Very highly recommended.


    Nov 22, 2016
  • Nick C
    Nick C, London

    I have to say he was excellent. Perfect English.I was dreading it and he appreciated my position and showed a lot of empathy.


    Fernando was very responsive with very quick turnaround. Explained all areas of the law in an understandable and uncomplicated way. Professional and cost effective.


    I deal with a lot with lawyers through my business and he is one of the best ones I have come across.


    Nov 04, 2016
  • Michael Anthony
    Michael Anthony, Malaysia

    I found Francisco to be very understanding of my needs and was able to discuss frankly with him on sensitive and personal matters.


    I found Francisco to be extremely professional, helpful, knowledgeable and importantly very approachable. I would certainly recommend him to anyone who needed such services and I would certainly use him and his law firm again if the need arose.


    Aug 19, 2016
  • Kate Godbehere
    Kate Godbehere, Granada

    From the outset, Rosa was extremely professional, approachable, efficient and competent. Her level of English is extraordinary, something very much appreciated as it made life easier for me during an inherently difficult time.


    Her correspondence was always relevant, detailed, simply and clearly explained and expressed. Rosa was kindly, matter of fact, calm, patient and always reassuring.

    Her pro-active, intelligent, thoughtful and knowledgeable advice helped very much during a particularly delicate and worrying stage of the process.


    Feb 25, 2016
  • Thomas Hills
    Thomas Hills, Spain

    Legally I believe everything was covered in what I think was a complicated situation, so I am satisfied that I was well represented.


    No problems were encountered with language, as the lawyer had perfect English. Meetings were scheduled and kept, which is good for Spain !

    Overall I am very satisfied with the service.


    Mar 13, 2015
  • Brett Goldsmith
    Brett Goldsmith, Canada

    He helped me not to put certain points in my divorce, that I later may have regretted. Often in haste a person will ask for or give certain concessions that later will be inappropriate.


    I was fortunately stopped from doing this by my lawyer Pedro.


    Pedro has a professional, helpful and friendly approach.


    Sep 21, 2014
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