Is it the right moment to put your Spanish home on the market?
Spain’s property prices rose 4.68 percent in the year to the third quarter of 2019, albeit at a very slower rate than the previous year’s growth. Spanish property prices have been affected by the COVID-19 epidemic, and pricing indices suggest that prices may fall despite indications of recovery. Carry out your market feasibility and research before deciding whether it makes sense and profit worthy of disposing your Spain house property. A profitable way to do this is by marketing worldwide to sell a house in Spain.
In Spain, how do you pick an estate agent?
Asking for suggestions from individuals you know who have recently worked with an estate agent is a smart place to start. As an option, be certain you meet with a few potential candidates before making a final decision. Choose a professional member of a professional body like FNAIM, SNPI, or UNPI if you are on the lookout for someone who has expertise in dealing with individuals from the UK and Ireland, Europe and Overseas.
In a hot market or a more affluent location, estate agency fees might range from 3% to 6% or even more. If you’re mandated to deposit extra fees in addition to the earlier charge, be certain you and the seller are on the same wavelength.
Nothing stops you from working with more than one estate agent, but if you sign an exclusive contract, you may get a lower commission. For the sake of your peace of mind, include a time restriction on any exclusive agreement. Don’t confuse purchasers by putting your home on the market at different prices from different estate agents. The same price everywhere is the golden rule.
Is it necessary to engage a real estate agent in Spain to sell your Spanish property?
Most of the big real estate websites have English language versions, so you may put up your own ‘Se Sells’ signs and put up the specifics on an internet property site. You may save the high commission fees by selling the house yourself by showing potential buyers around the property yourself. You can market and sell privately through Esales, Rightmove overseas, Magnolia Property and many many more.
In Spain, finding a lawyer
Using the services of an English-speaking solicitor to manage the transaction and provide tax advice, for example, is recommended but not required. Look for someone who’s been suggested. The UK government maintains a list of English-speaking attorneys in Spain.
Go to a notary public
To complete the transaction, you and the buyer will need to agree on a notary who will rubber-stamp the papers verify that all appropriate taxes have been paid. In addition, it is important to register your Spanish property with the Spanish Land Registry office. In total contrast to your legal adviser, the notary is unbiased, representing neither you nor the buyer’s interests. In essence, the notary’s job is to make sure everything is done correctly. A standard rate card oversees all 3000 Spanish notaries, lawyers and government staff.
A notary will probably be needed to meet with you and the interested party. Before you sign anything, they’ll go through everything with you one more time to make sure everything is correct. Upon completion of the transaction, the notary will send a copy of the title deed to the Land Registry.
The notary’s fees, which are dependent on the sale price specified in the deeds, are often paid in whole by the buyer these days. Make sure you have all of your paperwork ready.
Putting your paperwork in order will speed up the process and make it more efficient.
- The property’s title deeds
- receipts for the property tax paid by residents of the municipality (impuesto sobre bienes inmuebles or IBI)
- Utility bill copies
- Specifics of the local bylaws
- Items of furniture and other household goods will be sold as part of the deal.
- the document that certifies your status as a legal resident, assuming you have one
An overview of the steps involved in the sale of a home in Spain
In the end, the buyer and their lawyer do most of the work, which is a good thing.
When the solicitor is pleased with the results of the due diligence tests, a deposit agreement will be drafted for both parties to append their signatures. A deposit ensures both parties’ commitment to the contract and sets a date for the transaction. The buyer forfeits their deposit if they back out of the deal. If the seller fails to keep their end of the deal, you may be held liable for compensation.
You, the property purchase, their legal representatives, and the notary will all be in attendance at a meeting to finalise the deal. Any legal person acting in your place must be given power of attorney to attend on your behalf if you will not be able to. The notary will send a copy of the title deed to the Land Registry to notify them of the transaction.
Expenses and expenses associated with selling a property in Spain.
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 (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 (see below)
Taxes imposed on the sale of assets
You make a capital gains taxes paid when you sell your residence (CGT). This is a tax based on how much profit you gained compared to what you paid for it. An estate agent’s fee and other charges associated with selling it might be subtracted from the final price. In addition, the IRS determines a yearly allowance for each taxpayer. Depending on the extent of the gain, the CGT rate ranges from 19% to 23%.
If you’ve resided in Spain for three years and reinvest the proceeds of the sale of your primary residence in a new primary residence, you may be excused from paying capital gains tax (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.
Based on the land’s ‘cadastral’ or rateable value and the number of years since you purchased it, Plusvala is a municipal tax. When a plusvala payment is required, the seller often bears the burden of paying it. It is legal for both parties to agree on who will pay the tax, but it has to be paid within the 30 days of the sale taking place in most cases.
Taxation of non-residents
If you’re not a legal Spanish resident, the buyer is obligated to pay the tax authorities 3% of the purchase price upon completion of the sale. This will be deducted from any future capital gains taxes you may owe. You must settle any outstanding debt within 30 days after the transaction to receive a refund.
Ways to get your Spanish home on the market faster
If you want to reduce that average time-to-sell from 10 months to something more reasonable, you need to put some thinking and work into it.
De-clutter and redecorate in neutral colours with mirrors and plants; eliminate personal stuff. Remove any traces of your pets from the room.
Make the most of your property’s marketing potential by using high-quality images and carefully selecting the agents who will market your house.
Set a fair asking price for your house. You may have to take a loss if you bought in 2007 at the pinnacle of Spanish home prices and now wish to sell. If things don’t go quickly enough, be ready to accept an offer.
Provide your potential customers with as much convenience as possible by compiling all pertinent material into a thorough sales package.