Are you considering selling your property in Spain?. Here’s all you need to know before selling your foreign property. According to esalesinternational’s study, the average time to sell a house in Spain is about ten months. So, first and foremost, be ready for a lengthy process.
Is it the right time to put your Spanish property on the market?
Price increases for Spanish real estate climbed by 4.68 percent in the year to the third quarter of 2019, although at a slower rate than in 2018. After the COVID-19 epidemic, Spain’s property market appears to be recovering, although home price indicators are pointing to a probable decrease. One of the best methods to learn whether or not you should sell your Spanish property is to chat with a local estate agent.
In Spain, how do you pick an estate agent?
Asking for referrals from friends or family who have previously used an estate agent is an excellent place to start. Talk to a few people before making a final decision, if necessary.
When the market is extremely strong or in more affluent locations, estate agency fees can be 3 percent. Ensure that any additional expenses you’re required to pay on top of the cost are agreed upon in advance.
One estate agent won’t ban you from employing another; nevertheless, the commission should be lower when the two parties agree to an exclusive arrangement. The exclusivity clause should be limited so that you don’t become stuck in a relationship that isn’t functioning. 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.
Is it necessary to hire a real estate agent to sell your house in Spain?
Many of the leading property websites, such as Esales Property, fotocasa and idealista, provide English-language versions where you may post your own “Se Vende” signs and details. If you have the time and patience to tour potential buyers around your home, you may save money on commission costs by selling it yourself. If you don’t like them, you can’t deny that estate agents can alleviate a significant portion of the stress associated with selling a home.
Finding a solicitor in Spain
English-speaking solicitors are not required but are highly recommended if you plan on selling a property in a country where English is the primary language. Once more, ask around for a referral. The British government maintains a list of English-speaking attorneys in Spain.
Go to a notary
You and the buyer must agree regarding the notary’s duty, ensuring that all appropriate taxes have been remitted and registering the property in 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 ensure that everything is done correctly. Three thousand notaries exist in Spain, legal experts and governmental officials, and all work under a standard rate card.
The buyer and you (or someone you’ve granted power of attorney to) will need to meet with the notary to go over the papers. Before you sign anything, they’ll go through everything with you one more time to make sure everything is correct. A copy of the title deed will be sent to the Land Registry by the notary to notify them of the transaction.
Notary costs based on the selling price are customary nowadays, and the buyer is usually responsible for paying them.
Prepare all of your supporting paperwork.
Things will move more quickly and easily if your documents are in order.
You’ll need to:
- The property’s title deeds are available for inspection.
- Tax receipts from the city’s local government (impuesto sobre bienes inmuebles or IBI)
- Utility bill copies
- Statutory information for the neighbourhood
- A list of the furniture and other goods that will be for sale
- You’ll need this if you’re a legal resident.
An overview of the steps involved in the sale of a home in Spain
In a good way, the buyer and their lawyer will undertake most of the work. After doing all-essential due diligence checks and being happy with the results, the solicitor will draught a deposit contract for both parties to sign. Payment of a deposit (usually 10% of the agreed sale price) ensures each party’s commitment to the agreement and establishes a deadline for the purchase. The warranty is forfeited if the buyer walks away from the deal. 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.
Closing the deal will occur in front of a group of people, including you, the buyer, their legal representatives, and a notary public. Any legal person acting in your place must be given power of attorney to attend on your behalf if you will not be there. Upon completing the transaction, the notary will notify the Land Registry and provide them with a copy of the deed.
How expensive can Selling a home in Spain be?
The vendor can expect to pay the following:
- Commissions paid to real estate agents (typically between 3-6 percent )
- A certificate of energy efficiency (costing between €150 and €500)
- Capital gains tax is due if you sell your property for a profit that exceeds the price you paid for it (see below)
- Tax on plusvala goods and services.
