FAQ's
Find answers to common questions about MCC services, property listings, and the real estate process. We are here to provide clarity and support you every step of the way.
What is the ITP?
The ITP (Property Transfer Tax) is a tax applied to the transfer of assets, such as the purchase of a second-hand property, as well as donations and inheritances. This tax is managed by each autonomous community in Spain, so the tax rate may vary depending on the region.
It is important to note that the ITP must be paid within a certain period after the signing of the purchase contract, the acceptance of the inheritance, or the donation.
What is the Municipal Capital Gains Tax?
The Municipal Capital Gains Tax is a local tax that is applied to the increase in the value of urban land when a transfer occurs, whether by sale, inheritance, donation, or another type of transfer.
This tax is managed by the local municipalities, and its amount depends on the cadastral value of the land and the time that has passed since the last transfer.
What is the Post Mortem Capital Gains Tax?
The Post Mortem Municipal Capital Gains Tax refers to the capital gains tax that must be paid when a property is transferred through inheritance or donation, that is, when the property owner passes away and the assets are passed on to the heirs.
The Municipal Capital Gains Tax is calculated based on the increase in the land’s value from the last transfer (in this case, usually from the date of acquisition by the deceased) to the moment of the transfer to the heirs.
What is Capital Gain?
Capital gain refers to the increase in the value of a person’s or entity’s assets, which generates an economic gain. This increase typically occurs when a sale or transfer of an asset takes place, resulting in a capital gain or profit.
Capital gain is generally calculated as the difference between the acquisition value of an asset and its transfer value. In other words, it is the profit obtained from selling an asset for a price higher than its purchase price.
What is the cancellation of a mortgage registration?
If a property was encumbered with a mortgage and the debt has been fully paid, it is necessary to proceed with the cancellation of the mortgage registration in the Property Registry. This is done once the zero debt certificate or proof that the debt has been settled (economic cancellation) is presented.
What are Documented Legal Acts (AJD)?
Documented Legal Acts (AJD) are a type of tax that is levied on certain notarial, commercial, or administrative documents that reflect important legal acts, such as the purchase and sale of property, the constitution of mortgages, the establishment of companies, or the formalization of certain contracts.
At MCC, we are more than just a real estate firm; we are experts in asset, tax, and real estate management, committed to providing you with a comprehensive service fully tailored to your needs.
At MCC, we are more than just a real estate firm; we are experts in asset, tax, and real estate management, committed to providing you with a comprehensive service fully tailored to your needs.