How to Sell a Property in Spain

 

Are you contemplating selling property in Spain? According to TINSA, a property assessment business, properties in spain can be sold within 6 weeks to 6 months depending on how quickly the buyer seller and notary want to move. All the information you need to know before you decide to sell your foreign property is here.

 

Is this the right moment to put your Spanish home on the market?

Property prices in Spain grew by 4.68 percent to the third quarter of 2019, but the growth rate was lower than in the previous year. After the COVID-19 epidemic, Spain’s property market appears to be recovering, although home price indicators are pointing to a probable decrease. Accomplish your research before determining if you want to sell your Spanish property. One of the greatest methods to do this is by contacting a local real estate agent.

 

 

How to pick a Spanish real estate agent

People you know who have recently employed an estate agent might be an excellent source of information. As an alternative, be sure you meet with a few potential candidates before making a final decision. Look for someone who has expertise representing British citizens and, in any case, select someone who is a member of a professional organisation like the FNAIM, SNPI, or UNPI.

Estate agent fees can range from 3% to 6% or even more when the market is booming or in a more affluent neighbourhood. If you’re required to pay additional fees on top of the fee, be sure you and the seller are on the same page about it.

To avoid purchasers being confused, listing your home with more than one estate agency and having them all list it at the same price is a good idea. Using more than one estate agent isn’t a problem, but if you agree to an exclusive contract, you may be able to negotiate a lower fee. For the sake of your own peace of mind, include a time restriction on any exclusive agreement.

 

 

Is it necessary to use the services of a real estate agent to market your Spanish property?

You’re wrong. Internet property sites like Kyero and Esales Property have English language versions, so in principle, you could put up your own ‘Se Sells’ signs. If you have the time and patience to walk prospective buyers around your house, selling it yourself can save you thousands of dollars in commission costs. Even if they’re hated or loved, estate agents can alleviate some of the burdens of selling a home.

 

 

How to locate a lawyer in Spain

Look for someone who’s been referred to you. An English-speaking solicitor should be hired to manage the transaction and advise you on tax difficulties and so forth, even if it’s not required. English-speaking attorneys in Spain are listed by the UK government.

 

 

Go to a notary public

There must be an agreement between you and the buyer regarding the notary’s duty, whose job is to ensure that all necessary taxes have been accounted for and register the property with the Spanish Land Registry. In contrast to your solicitor, the notary is unbiased, representing neither you nor the buyer’s interests. The notary’s job is to make sure that everything is done properly. A uniform rate card governs all 3000 Spanish notaries, legal professionals and government employees.

For this purpose, a notary will be required to meet with the buyer and you (or someone you have provided power of attorney, such as your solicitor). The notary will send a copy of the title deed to the Land Registry to notify them of the transaction. After they’ve gone over everything with you, they’ll make sure everything is in order before you sign the paperwork.

 

Notary costs based on the selling price are customary nowadays, and the buyer is usually responsible for paying them.

Prepare all of your supporting documents.

Things will move more quickly and easily if your documents are in order.

This is what you’ll require:

  • The property’s title deeds are available.
  • Invoices for the municipal property tax in the locality.
  • Utility bill copies
  • The statutes of the community.
  • Any furniture or other objects that will be for sale, such as this one:
  • If you are a permanent resident, you will receive a residence card.
  • The Spanish house-selling procedure

After doing the appropriate due diligence checks and being pleased with the results, the solicitor will produce a deposit contract for both parties to sign. A deposit (usually 10% of the agreed sale price) ensures both parties’ commitment to the contract and sets a date for the transaction. The deposit is forfeited if the buyer backs out. If you, as the seller, fail to keep your end of the bargain, you may be held liable for compensatory damages equal to two times the deposit amount.

You, the buyer, their legal representatives, and the notary will all be present during the closure of the transaction. Assuming you can’t make it, a legal representative will need to be granted power of attorney so they may take your place. Upon completing the transaction, the notary will notify the Land Registry and provide them with a copy of the deed.

Selling a home in Spain may be expensive. You should anticipate paying the following fees as the seller:

  • An estate agent’s fee (typically between 3-6 percent )
  • A certificate of energy efficiency (between €150 and €500)
  • Selling for more than the initial cost is subject to capital gains tax (see below)
  • Taxes imposed by the Plusvala

Don’t forget that WorldFirst’s customised foreign exchange solutions may be able to save you time and money when you transfer the money from the sale back to the UK.

 

 

Capital gains tax

The sale price minus the purchase price is the basis for calculating capital gains tax (CGT). Based on the extent of the gain, the CGT rate ranges from 19 percent to 23 percent. For example, the fees paid to an estate agent might be removed before calculating the final price. There is also a yearly tax-free allowance that is determined by the IRS.

If you have resided in Spain for three years and reinvest the proceeds from the sale of your primary residence in a new primary residence, you may be excluded from paying capital gains tax (CGT) (which you must then live in for the next three years). This property can be located in any EU member state; however, you should get financial counsel due to the ever-changing regulations.

Plusvalía

Based on the land’s ‘cadastral’ or rateable value and the number of years since you purchased it, Plusvala is a municipal tax. As a matter of law, the buyer and seller are free to agree on who will pay the tax, but it must be paid within 30 days after the transaction. In most cases, the plusvala, only a few hundred euros, is the seller’s responsibility.

 

Taxes and non-residents.

The buyer must pay tax on any property sold if the buyer is not an official resident of Spain. If you owe capital gains tax, this will be deductible. The remaining payment must be paid within 30 days after the sale; otherwise, a refund may be requested.

 

How to sell your Spanish home more quickly

It’s well worth the time and effort to reduce the average time to sell from 10 months to a more reasonable amount:

  • Remove personal stuff, simplify, remodel in neutral colours, and add mirrors and plants to the property to make it more appealing to potential buyers. Remove any and all traces of your pets from the space to keep it as airy as possible.
  • Make the most of your property’s marketing potential by using high-quality images and carefully selecting the real estate professionals who will market your house.
  • Ensure that your home’s asking price is reasonable. If you bought a house in Spain during the pinnacle of the market in 2007 and later decide to sell, you may have to take a loss. If things don’t go quickly enough for your satisfaction, be prepared to accept an offer.
  • Put together a complete sales package with all the appropriate papers you can get your hands on to make your potential customers’ lives as simple as possible.

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