UK Resident Selling Property in Madrid Spain

Are you contemplating the possibility of putting your Spanish home on the market? Here’s everything you need to know about selling your Spanish property before you even consider it. According to property assessment business TINSA, the usual time it takes to sell a house in Spain is approximately 10 months, so be prepared for that.

 

Is this 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 slower rate than the previous year’s rise. After the COVID-19 epidemic, Spain’s property market appears to be recovering, although home price indicators are pointing to a probable decrease. If you’re thinking about putting your Spanish house on the market, talking to a local estate agent is a good place to start.

 

How to pick a Spanish real estate agent

 

Asking for suggestions from individuals you know who have recently used an estate agent is a smart place to start. As an alternative, be sure you meet with a few potential candidates before making a final decision. Choose a professional who has expertise dealing with individuals from the UK.

 

In a hot market, or in a more affluent location, estate agency fees might range from 3% to 6% or even more. Make certain that any additional fees you’re required to pay on top of the cost are agreed upon in advance.

 

In order to get a lower commission, you should sign an exclusive contract with an estate agency. There is no prohibition on utilising many agents. For the sake of your own peace of mind, include a time restriction on any exclusive agreement. To avoid buyers 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?

 

No you dont need an agent you can always market and sell privately online. While it’s theoretically possible to set up your own For Sale signs on an internet property portal like esalesinternational or idealista and submit the details, it can be time consuming doing the viewings yourself. If you have the time and patience to tour potential buyers around your home, you may save thousands on commission costs by selling it yourself. Although many people despise estate agents, they may relieve a lot of the pressure that comes along with selling a home by utilising their expertise, resources, and infrastructure.

 

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 referred to you. A list of English-speaking attorneys in Spain is maintained by the British government.

 

Go to a notary public

 

There will be a notary that both you and the buyer will need to agree on. The notary’s job will be to sign the papers and verify that all appropriate taxes have been paid. The notary, unlike your lawyer, is impartial, acting neither for you nor the buyer. The notary’s job is to make certain that everything is done correctly during the signing of documents. A common rate card applies to all 3000 Spanish notaries, who are both legal professionals and government workers. This eliminates the need to shop around.

 

To go over the papers, the buyer and you (or someone you’ve granted power of attorney to) will need to meet with the notary. Make sure you’ve got all the paperwork in place before signing it off on it. Upon completion of the transaction, a copy of the title deed will be sent to the Land Registry by the notary.

 

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

 

Make sure all of your paperwork is in order.

 

Having all of your paperwork in order will speed up the process and make it more efficient.

 

You’ll need to:

 

The property’s title deeds

 

Invoices for the municipal property tax in the locality (impuesto sobre bienes inmuebles or IBI)

 

Original and photocopies of all utility invoices

 

The statutes of the community.

 

A list of the furniture and other goods that will be for sale

 

If you are a permanent resident, you will receive a residence card.

 

The Spanish house-selling procedure

 

In a good way, the buyer and their lawyer will undertake the bulk of the work.

 

The solicitor will produce a deposit contract for both parties to sign after doing the appropriate due diligence checks and being pleased with the results. Each side is assured of the other’s commitment to the contract and a date for purchase by paying a deposit (usually 10% of the agreed sale price). The buyer forfeits their deposit if they back out of the deal. If you as the vendor renege on your promise, you may be forced to pay twice the deposit amount as compensation to the buyer.

 

You, the buyer, their legal representatives, and the notary will all be present during the closure of the transaction. It is necessary that you transfer power of attorney to a legal representative if you are unable to attend. Upon completion of the transaction, the notary will notify the Land Registry and provide them a copy of the deed.

 

Selling a home in Spain may be expensive.

 

You should anticipate to pay the following fees as the seller:

 

 

  • 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)

 

  • Additional tax (see below)

 

  • 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.

 

Inheritance tax

 

The capital gains tax (CGT) is a tax on the difference between the sale price and what you paid for the property. For example, the fees paid to an estate agency might be removed before calculating the final price. The tax office also calculates an annual allowance. Based on the extent of the gain, the CGT rate ranges from 19 percent to 23 percent.

 

 

 

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 it is recommended that you get financial counsel due to the ever-changing regulations.

Plusvalía

 

On the basis of the land’s ‘cadastral’ or rateable value and the number of years since you purchased it, Plusvala is a municipal tax. Sellers are often responsible for paying the plusvala fee, which is typically less than a thousand euros. Although it is permissible for the two parties to come to an agreement on who pays the tax, it is normally required that it be paid within 30 days after the transaction.

Taxes and non-residents

 

If you’re not a legal resident of Spain, the buyer must provide the tax authorities 3% of the selling price upon completion if you’re not them. This will be deducted from any future capital gains taxes you may owe. The remaining payment must be paid within 30 days after the sale, otherwise a refund may be requested.

 

Selling your home in Spain more quickly

 

If you want to reduce that average time-to-sell from 10 months to something more reasonable, you need put some thinking and work into it.

 

Dress the home: remove personal objects, declutter, renovate in neutral hues, add mirrors and plants. 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 real estate professionals who will market your house.

 

Set a fair asking price for your house. In the event that you purchased a property in Spain in 2007 and later decide to sell, you may be forced to take a loss. If things don’t go quickly enough, be ready to accept an offer.

 

Make the lives of your potential customers as easy as possible by putting up a complete sales pack with all the required paperwork you can find. Contact us today to buy or sell property in Spain quickly.

 

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