Property or Real Estate Definition
Property or Real Estate
Property or Real Estate; all those goods, such as houses or farms, that cannot be moved without causing damage, because they are part of a land or are anchored or nailed to it, have this consideration. It comes from the word immobile. For civil purposes, ships are considered immovable property.
In most of countries, in Civil Law the distinction between movable and immovable property is very important in many cases. Among others, it is worth to note:
- Real estate can be registered in the Real Estate Registry, which gives greater protection to the owner.
- Real estate is the only property that can be mortgaged. The terms of usucapion or acquisitive prescription are much longer. However, this list does not exhaust the specialties, which are countless, given the importance that real estate has historically had in the economy, and the specialty that derives from its easy location. Type of real estate: That which is not transferable. 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. When movable things are attached to them.
- Real estate by analogy, such as mortgage concessions.
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In many countries, the fiscal law concerning real estate can be subject to or subject to various taxes:
- Tax on immovable property: tax of a direct and real nature that taxes the ownership of a property. It is paid annually, based on the cadastral value assigned to the property.
- Tax on the increase in the value of urban land: a direct tax levied on the increase in the value of urban land that occurs as a result of its transfer. Its amount will depend on the years that have passed since the previous change of ownership, the municipality where it is located and within the same municipality of its location.
- Income tax: tax of a direct and personal nature that taxes the income of natural persons. In this tax, an assumption is made that the ownership of immovable property is taxed when it is not used by its owner and does not produce income, it is therefore a “presumed income” which, in general, involves integration into the taxable base of the tax, in terms of returns on real estate capital, of 2 percent of the cadastral value of properties that meet the aforementioned conditions. In addition, in cases of property transfer, the capital gain obtained in the transfer is also taxed as capital gain.
- Wealth tax: direct tax of a personal nature that taxes the net worth of natural persons. While the properties are part of this net worth, they are also taxed by this tax.
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