Around 800,0001 British citizens own a house in Spain, making it a popular choice for homebuyers from the United Kingdom. However, how difficult is it to move house or sell an investment property in Spain?
If you own a property in Spain and want to get rid of it, keep reading. We’ve put together this comprehensive guide to help you sell your home in Spain. This contains all the information you need to know about the selling process, including costs, taxes, timeframes, legal requirements, and much more.
Also included is a helpful hint on how to transfer your property sale earnings back to your home country at the most cost-effective rate. More on that, however, in a moment. Start by listing your Spanish home for sale.
What is the current market like in Spain?
The global Covid-19 health issue has severely impacted international real estate markets.
Despite the epidemic, housing values in Spain have stayed steady and even climbed in locations like Madrid, Navarre, the Basque Country, and the Valencian Community.
Rural and coastal parts of Spain and smaller municipalities have also seen an increase in property values. As a result of the epidemic, more Spaniards are trying to relocate from metropolitan centres to rural areas.
Apartments are no longer in high demand across the country, but rustic farmhouses and villas are becoming increasingly popular.
Prices for Spanish homes might decline as much as 3.5% because of the present market turmoil. In the second half of 2022, property prices are likely to rise due to a delay in putting your home on the market.
A step-by-step guide to selling a home in Spain
So, what’s the deal with Spanish real estate sales? So that you know precisely what to anticipate, we’ll go through the basics.
Consult with a real estate professional
Your house in Spain doesn’t need an estate agent to sell, and selling it yourself on an internet property site may save you a lot of money in commission costs.
It’s possible to make money with an estate agent, though. As well as selling your house for a decent price, agents may also take care of time-consuming activities like showing potential purchasers around your home.
Look for English-speaking estate agents who have expertise working with UK sellers and expats and who market to Europe and Scandinavia when selecting an estate agency. It is best to get a referral from a person you know.
Any other option would be to find an agent certified by an organisation like the Official School of Estate Agents (also known as the API)3, licenced and accredited. AIM, MLS, and ACI are other reputable organisations.
Publicise the property’s existence.
Put your home on the market and begin advertising your property for possible buyers. Preparing the location for a photoshoot, as well as producing excellent pictures, is vital. To begin with, your estate agent will be the primary point of contact for advertising the property, but you may also use sites like esalesinternational.
Look for a lawyer
Even if you don’t need one, it’s a good idea to hire a lawyer to assist you in negotiating and completing the deal. The best suggestion is from a trusted friend or family member; however, the UK government also maintains a directory of English-speaking property lawyers.
Select a notary public
El notario, in Spain, is a key player in the sale’s documentation, taxes, and registration with the Land Registry. They ensure that everything is done following the letter of the law and that the transaction goes smoothly.
The buyer and seller must agree on a notary after accepting an offer. They all charge the same standard rate, roughly 3,000 notaries in Spain.
The paperwork should be ready to go.
For a seamless transaction, here’s what you (or your lawyer) need to have on hand:
- The documents that prove ownership of the property.
- Utility bill copies
- Receipts for the property’s IBI (local municipal tax)
- a copy of your permit of residence (if applicable)
- A list of the items that will be included in the property sale.
- The specifics of any municipal laws that may be relevant.
It’s time to sign the deposit contract.
Due diligence checks have been performed, and now it’s time to sign a deposit contract. The buyer’s lawyer will draft a preliminary contract, which both parties will sign. The purchase will be completed on a specific date.
Paying the down payment
The buyer will pay the deposit as soon as a preliminary agreement is completed. As in other countries, deposits are utilised as a strong show of commitment to a transaction. What happens to the deposit if the buyer or seller decides to back out? That’s exactly what we’ll talk about in a moment.
The purchase is completed at a meeting at this point.
A meeting between the buyer and seller and their respective legal representatives is required to complete the sale. There will also be a notary in attendance. At this point, the purchase agreement comes into play (escritura de compravento)
To notify the Land Registry of the sale, the notary informs them and provides them with copies of the deeds of the property. You get the remaining funds, and the buyer takes possession of the property.
What is the amount of the down payment?
Similar to many other nations, such as the United Kingdom, the standard deposit in Spain is 10%. If either side decides to cancel, what happens to the deposit?
To put it simply, if you (the seller) decide to walk away from an agreement, you may be forced to pay the buyer to double their deposit. In the eyes of many, this is an act of restitution.
If the buyer cancels the transaction, they will forfeit their deposit.
Selling a home in Spain may be a long and drawn-out process.
If you place your home on the market in Spain, the time it takes to sell it might vary greatly. The location of your home and the market’s demand for your particular type of property are important considerations.
Because of the coronavirus pandemic, the average time to sell a home in Spain rose from five months to six months in 2020. However, some studies have shown that it might take up to 10 months5 for your Spanish house to sell eventually.
Is it possible for you to move more quickly?
Selling your home faster in Spain is possible if you follow a few simple guidelines. There are a few things you can do to improve your chances:
- Upload at least 25-30 high-resolution photographs taken by a professional photographer in well-lit conditions for listing websites like idealista.com.
- Digital marketing tactics should be utilised effectively, such as social media advertising and online real estate websites.
- Describe the layout of the property in the ad
- The property should be shown off via a video or virtual tour.
- Set a fair selling price by doing market research and consulting with industry experts.
- Remove personal belongings and ‘dress’ each room for viewings before decluttering and deep cleaning the house.
- A well-written property description may make or break the sale of a home.
Costs and taxes involved when Selling a home in Spain
When it comes to selling a house in Spain, the most significant question is how much it will cost you. Let’s take a look at the most important fees and taxes you should be aware of.
Many of the costs involved with a sale will be covered by the buyer in Spain, which is a win for sellers. There are, however, a few costs you’ll have to bear. The following are some examples:
If you decide to sell your house in Spain through the services of an agent, you may anticipate paying a commission of 3-6 percent of the sales price.
The energy performance certificate fee range between €150 and €300.
Unless you live in Spain and have a Spanish bank account, you may incur additional costs when transferring the sale profits to the UK from Spain.