Selling your home can be a complex process. That’s why our property specialists can guide you with a tailored campaign aimed at selling your property within the shortest time. With our established and trusted global network of real estate agents, we are able to showcase your property globally. Our members of staff are also able to communicate is a number of languages, including Spanish, German, French, Russian, Arabic and Chinese, helping us find the right buyer for your property.
Once you have made a decision to sell you will need to have the following documentation in order. This will help to complete the process faster and more smoothly.
- Title deed or other proof of ownership (deed of purchase, inheritance, etc.)
- Identity document (passport and NIE)
- Certificate of tax residence (if applicable)
- Nota Simple (extract from the Property Register)
- First Occupancy Licence or Certificate of Habitability
- Most recent Local Council Rates (IBI) receipt
- Community of property owners certificate
- Certificate of outstanding debt issued by the bank (if there is a mortgage on the property)
- Most recent utilities bills
TAXES: To be paid when selling a property in Spain, as non resident:
Plusvalía. This is a municipal tax payable to the local council, based on the increase of the official value of the land between the purchase and the sale dates. Believe it or not, the official price of the land always increases in Spain. It is advisable to ask your lawyer to calculate this from the beginning, and depending on this, you may have more or less room for price negotiations, and it may even affect your asking sale price. Note: Several Spanish Court Decisions have ruled that the way this tax is calculated in not legal, particularly in cases where the sale price is lower than the purchase price, and therefore the Spanish government is expected to pass a new law modifying this tax. However, this legal modification is not in force yet, so at present, (July 2019), and particularly if you are Non Resident, the Plusvalia needs to be paid as it has been up to now, although in some cases a refund can be requested afterwards. Please ask your lawyer about this.
Capital Gains Tax (CGT). Unlike the plusvalia, this tax is fairer because it is based on the actual profit obtained. Currently, Non Residents in Spain (but residents in EU countries) have to pay 19% on the profit. However it is important to know that even if you are making no profit at all, and due to you being a Non Resident, the buyer of your property will be obliged to retain 3% of the sale price on account of your possible tax liability. Of course, if you have no tax liability at all because you are losing money with the sale, or your liability if less than the 3% retained, you will be entitled to a total or partial tax rebate, depending on the case.
Please note that the tax is not 3% of the sale price + 19% on the profit. The tax is only the latter; the retention is a payment on account of the tax.
What are the costs involved:
Estate Agency fee. Most of the property agents in the Costa del Sol charge a commission between 4% and 6% + IVA. This will come off the sale price, so you won’t be requested to make any payment on account (only a few Agencies will ask you to pay some money to list your property in their magazines).
Lawyer fee. The standard fee that most lawyers charge for advising clients during the entire process of selling a properly in Spain is 1% + IVA on the sale price, and most of them applies minimums and, sometimes, maximums. Some law firms, like ourselves, offer better rates when the sale price is high. It is advisable to contact a lawyer at the early stages of a sale. They will confirm their fees and will also inform you about taxes, etc.
Certificate of Energy Performance. This has been compulsory in Spain since 2013, this is something you need to arrange BEFORE you put your property on the market. You can be fined for advertising your property for sale (or long term rent) without this Certificate. It can cost between 80 and 180 Euros for an apartment and between 180 and 300 for a villa (approx,). You can ask your property agent to organise this for you.
Mortgage cancellation costs. If there is a mortgage charge on the property that you want to sell, even it you paid it off years ago, you need to make sure that the charge has been lifted from the Property Registry. This involves Notary and Land Registry fees, and you should allocate approximately 800,00 Euros for this. Remember: even if you have paid the mortgage totally, you still need to remove the charge from the property in the Land Registry, and unless you instruct the bank to do it, that will not be done.
Please feel free to contact us for more information. We look forward to helping you sell your property!