Real Estate

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Real estate is all those goods considered real estate, having in common the circumstance of being intimately linked to the land, linked in an inseparable way, physically or legally to the land, such as plots, urbanized or not, houses, industrial naves, that is, so-called farms, in short, that are goods impossible to move or separate from the ground without causing damage, because they are part of the land or are anchored to it. For registration legal purposes, in some legislation ships and aircraft have similar consideration to that of immovable property.

In civil law,the distinction between movable and immovable property has different legal consequences, among which it is worth highlighting, without the aim of completeness, the following:

  • Real estate may be registered in a Property Registry,which offers greater protection to rightholders.
  • Real estate is the main subject of the mortgage guarantee.
  • The terms of usucapion or purchasing requirement for real estate are longer than those required for furniture.

However, the privileged legal protection enjoyed historically by real estate and justified by its greater economic importance has been extended to some movable goods of special value. As a result, it is the registration protection afforded to aircraft, ships or other singular things, as well as the possibility that they may be the subject of a mortgage.

Types of real estate

Real estate can be classified into:

  • Real estate by nature, such as soil and subsoil.
  • Real estate by incorporation, such as constructions.
  • Real estate by destination, those furniture that favors or benefits the property they serve, such as farming or mining utensils

Tax law

In tax law a immovable property may be subject to one or more taxes:

  • Real Estate Tax (IBI): a tax or contribution of a direct nature and real nature that taxes the ownership of an estate. It is paid annually, depending on the cadastral or fiscal appraisal value assigned to the property.
  • Tax on the increase in the value of land of an urban nature: a direct tax on the increase in the value of urban land which is highlighted as a result of their transmission. Its amount will depend on the years since the previous change of ownership, the municipality in which it is located and within the municipality itself its location there.
  • Income tax : atax of a direct nature and a personal nature that taxes the income of natural persons. This tax taxes the ownership of real estate when not used by its owner and do not produce income. It is therefore an "presumed income" which generally entails the integration into the tax base of the tax, as income from real estate capital, of 2% of its cadastral value. In addition, in cases of transfer of real estate, the capital gain obtained is also taxed as an equity gain.
  • Estate tax :direct personal tax on the net worth of natural persons. As the properties become part of that equity, they are also taxed for this tax.