Selling a home in Spain can be a breeze compared to the UK, or it can be an ordeal, depending on who you ask. There is a constant ebb and flow of international buyers and sellers in Spain’s real estate market. Property sellers in Spain frequently have inquiries concerning capital gains tax, the energy efficiency certificate, and the registration process at the land registry. As an added bonus, they are curious about the current real estate prices in Spain, as well as any applicable taxes upon sale, commissions charged by real estate brokers, typical selling times, and typical asking prices. It stands to reason that a seller would prefer a speedy sale at the lowest possible price. Here’s what you need to know to entice buyers and keep things running smoothly during the selling process.
Spanish Real Estate for Sale
- Getting Your Spanish Home Ready to Sell
Unmaintained Spanish homes are far more difficult to market. Get all the little things out of the way before you call an estate agent. De-clutter, de-personalize, and repaint if necessary. Attempt to view your home through the eyes of a potential buyer by touring it as if you were just seeing it for the first time. In Spain, prospective homebuyers aren’t considering the property’s aesthetic value, but rather the cost and time commitment involved in making any necessary repairs. Potential buyers may be swayed toward purchasing your home over others if you immediately attend to the necessary repairs. Spending money on upkeep and repairs now can have a positive effect on the selling process and the final asking price, say experts. Find out what sets you apart from the competition.
- Get the Paperwork in Order Before Selling Your Home or Land
Residents of Spain are required to obtain a Residencia Card.
Bills for essential services
Specifics on local statues
Income from property taxes collected by local governments
Spanish Real Estate Buying Advice
- Spanish Energy Efficiency Document
Information regarding the property’s energy efficiency and consumption can be found in the energy performance certificate. The study covers three utilities: gas, water, and power, and it provides letter grades ranging from A (the best) to G (the worst) (least efficient). If you’re selling a property in Spain and need a certificate to do so, you can get one by visiting an EPC Assessor who is registered in the country, but we also help all sellers who list with us get one. Your Spanish home is worth more now that you know the report will confirm the property is guaranteed for ten years. Properties under 50 square metres or buildings occupied for less than four months per year are exempt from obtaining an EPC.
- Regarding the Asking Price
Due to the influence of two other factors, the selling price of a home in Spain cannot be determined simply by doing research online. We’ve already covered the first one. Two, the asking price is not the only determinant of the buying price of Spanish real estate. Because of the global impact of the COVID pandemic and other current events, the global real estate market is currently characterized by extreme volatility. You may get a rough idea by looking at comparable listings in the area, but if you want an accurate assessment of your property’s worth in Spain, give us a call right now and we’ll have one of our native Spanish agents come take a look.
- Locating Spanish Real Estate Agents
We have worked with both international and local real estate agencies in Spain. Get in touch with us now to learn more about the selling services and fees associated with our work. If you decide to look for a Spanish real estate agent, make sure to hire someone who has a proven track record. Property owners are under no need to hire an agent, but if they want to maximize their profit, we can help.
6: Legal Representation and Costs
The Spanish legal system has a large number of professionals who can communicate in English. This next stage will, of course, result in increased legal fees. Legally, home sellers don’t need one, but having one is a good idea. The attorney will also draw up sales contracts, handle deposits, and schedule the closing. Note that if the vendor cancels, they will lose their deposit but the buyer would forfeit their entire payment
- Spanish Taxes and Notary Publics
The new title deeds will be registered with the Spanish land registry with the help of the notary office, and you will be informed of the land registry fees that must be paid. The fee charged by a notary public is uniform across the board. Buyers in Spain typically cover notary costs, but you should verify this before closing. After everything has been settled, the property seller, buyer, and legal representatives will go to the notary office, where the paperwork and taxes will be handled.
- Tax on Capital Gains While Trying to Make a Sale
There is no tax on capital gains for Spanish homeowners who sell their homes. Otherwise, you may owe a capital gains tax of 19% to 23% of your earnings. The capital gains tax may be waived for any Spanish tax resident who sells their current home and purchases another one in Spain as a primary or secondary residence. (Check out the available condos and houses here if you’re in the market to buy.) Buyers who are not residents of the country in which the property is located are subject to a 3% tax, which can be offset by the seller against any capital gains they might realize.
- Spain’s Plusvalia Property Tax
The Spanish government collects a tax known as Plusvala on the market value of land in metropolitan areas. Local municipal taxes are often covered by the seller, however, this is negotiable with the buyer. Most Spanish municipalities have an urban land value growth component to their local tax because of local infrastructure investment plans. As a result, the Plusvalia municipal tax recovers some of the value created by the company’s continuous investment in the neighborhoods around it. To clarify, Plusvalia municipal only applies to real estate in urban areas and not in the countryside. The tax must be paid to the town hall of the Spanish tax authorities within 30 days of the sale of the property.
- Two Spanish Sales Strategies
Property Sales with Furnishings Included: It is important to sit down with a potential buyer of your completely furnished Spanish home and make a detailed list of everything that is included in the sale and everything that is not. Make sure this list is included in all government contracts involving real estate. This eliminates a lot of issues that may arise later.
All real estate transactions in Spain are conducted in Euros; however, if you intend to transfer the proceeds of the sale to a country that uses a different currency, you need to work with a foreign exchange company rather than a bank. They offer better exchange rates and lower expenses overall.
