Selling a Property in Spain
A guide to selling your property in Spain (for resale properties only)
5 relevant points to consider before putting your property up for sale
- Get the asking price right from the beginning.
- Make sure the property is always presentable.
- Secure easy access to your property for your agent by handing over copies of the keys, remote control – or make sure that you or your key holder is available and reachable. We can’t sell your property if we can’t get in.
- Concentrate on a few good agents only. We promote your property stronger, if we know we stand a fair chance to sell it.
- Listen to reasonable offers even though the final selling price may be lower than first anticipated. We are on buyer’s market and any buyer is perfectly aware of this, and will go lower than the announced asking price.
We are member of the Infocasa agency network and use a number of different property portals to attract interest from buyers to our listed properties. During recent years agency collaboration has become increasingly important and the majority of sales are collaboration between Listing Agent and Buyers’ Agent.
On exclusive listings we would decide on a marketing strategy together with you in order to secure maximum exposure of your property. An exclusive listing contract runs normally for 6 months and cannot be terminated before.
For Sale sign
Our For Sale sign is still the most effective way of attracting buyers to your property.
Selling a property in Spain is a relatively straightforward process, but as with buying a property, we recommend our sellers to liaise with a lawyer to assist and advise you in the final process when selling your property.
Is the property you are selling personally owned or company owned? There may be tax issues to consider, before putting your property up for sale.¨
Obligatory listing documents required
We follow the official 218-decree for listing properties in Andalucia. Upon listing we need the following documents to follow the listing contract;
- Receipt for paid council tax from town hall (I.B.I.)
- Receipt for paid rubbish collection (Basura)
- Copy of N.I.E. number, passport
- Copy of Nota Simple
From June 1st, 2013, it’s obligatory to present an Energy Certificate. Without the certificate you cannot complete the sale of your property. We are happy to refer you to collaborating architects. The cost of the certificate depends on property type, size, and conditions – expect prices from approx. 200 euros.
Not obligatory, however the most frequent question from any buyer, are the monthly community fees. A copy of last paid community fees is very useful.
- Agency commission is 5% on the sales price + 21% VAT.
- Lawyers’ fees are 1% on the sales price + 21% VAT. A lawyer is by law obliged to having insurance for any possible mistakes made during any legal interaction on the sale of your property.
- Plusvalía: The Plusvalía is a municipality tax on sale of a property, based on the increase in value of the land on which the property stands. The base for this tax is the “valor catastral” stated in the I.B.I. receipt. The amount due depends on years of ownership + area tariffs determined by the tax authorities. The final selling price has no effect on the Plusvalía tax.
- Obligatory retention for Non-Residents: If the vendor is a Non-Resident, the buyer is obliged to withhold 3% of the purchase price and pay the amount to the tax authorities. This ensures sufficient funds in Spain for any unpaid tax bill (many Non-Residents forget to pay their yearly Non-Resident income tax). Vendor’s lawyer can after completion apply for the amount to be refunded, provided the sale is without profits, and all taxes have been paid.
- Capital Gains Tax: Vendor is responsible for the payment of the capital gains tax (all though the amount is normally withheld by the buyer upon completion). This tax is applicable, when profits on the sale are higher than the 3% Non-Resident retention. The tax rate on the difference is 21%. Any conveyance costs involved in the buying and selling of the property can be deducted, i.e. purchase tax, invoices from agents, architects, builders, lawyers, land registry, notary, provided they are accompanied by original invoices.
- Capital Gains Tax exempts: Vendors of 65 years of age or more are capital gains tax exempts, provided they are Fiscal Residents in Spain and have lived in the property as primary residence for more than 3 years. Also exempt are vendors less than 65 years of age, provided they are Fiscal Residents in Spain and have lived in the property as primary residence for more than 3 years, and the profits are reinvested in another primary residence within a maximum of 2 years after completion.
- Mortgage cancellation fees normally vary between 0,5 – 1% on the outstanding amount due.
Please note that you cannot go to balance and completion without having cleared all your outstanding debts and unpaid bills on the property you are selling, including having cleared unpaid non-resident income tax during years of ownership of the property, unpaid community fees, unpaid council tax, etc.