Sale & Leaseback

Is the contract under which one person gives another the use of an asset in exchange for the payment of a price.

Is the owner of the property who transfers the use of the property to the tenant or lessee.

Is the person who uses the property for the established period, in exchange for the payment of a price or rent agreed by both parties.

It is the contract by which a person (seller) transmits to another (buyer) a determined good in exchange for a certain price.

In multi-risk home insurance, it is the coverage that exists for all the movable property in a home that does not form part of the structure of the building, for example, furniture, electrical appliances, household goods and other belongings.

In-home insurance is the coverage of possible damage that may occur to the structures and fixed installations of the home (walls, windows, water and electricity installations, fixed decorative elements, glass, etc.).

The Property Tax (IBI or Impuesto sobre Bienes Inmuebles in Spanish) is a local tax, and therefore, its collection is the responsibility of the local councils. The person liable for the annual payment of this tax or taxpayer is the owner of the property on 1^st January of each year.

These are the taxes that are yielded when a property is purchased and sold. The buyer of the property must pay the Transfer Tax, following the regulations of each Autonomous Community, while the seller is responsible for the payment of the Municipal Capital Gains Tax to the Town Hall in whose municipality the property is located. Likewise, when a Lease Contract is signed, a Tax on Property Transfers must also be paid, the taxpayer being the lessee, and its amount depends on the rent established in the Lease Contract and the term of the lease.

Law 29/1994 on Urban Leases, amended by Law 4/2013, regulates the leasing of property intended for housing and those used for purposes other than housing. A residential lease is a lease of a habitable building whose main purpose is to satisfy the permanent need for the use and enjoyment of the property by the lessee.

This is an English term, used in Anglo-Saxon countries, to refer to a Sale and Leaseback. It is a normal Purchase and Sale in which, simultaneously to the transfer, a Lease Contract is formalised with the Seller, who from that moment onwards becomes the tenant of the property.