If you are selling a property in Spain you need to be aware that the procedure is very similar to buying a home. It is important to talk to Costalets in order to understand the full procedure and costs.
Getting the Asking Price Right
Achieving the right price and asking the right price can often be two different things. That is why it is important to work with a real estate agents like Costalets that knows and understands the area, your type of property and the client base, so that your property does not stay on the market for years.
Finding the Right Agent
Finding the right real estate agent with your interests in mind can be hard, we at Costalets Real Estate have you in mind at all times. We have been working closely with clients for over 2o years with most of our business coming from recommendation. Costalets is – big enough to be professional, small enough to care!
Answering Common Buyer Questions
In order to be sure that the process runs smoothly the seller should have documentation ready. This includes the original title deeds of the property, copies of the receipts for the local property taxes, copies of water, gas and electricity bills, details of the community statutes, a community certificate of payment, a list of any items of furniture which are to be included in the sale and a residencia card if you have official Spanish residency status. You will also require a Nota Simple of less than 6 months old, available from the local Land Registry and a full EPC (Energy Certificate. We at Costalets can obtain these last 2 items for you.
If you are selling a property but you are not officially resident in Spain you will have 3% of the purchase price retained by the buyer. This will be given to the tax authorities on completion of the sale and will be offset against any taxes owed by the seller. This is mainly in respect of Capital Gains Tax. If the total taxes owed are less than 3% you can apply for a refund of the difference. If the tax owed is more than the 3% you need to ensure that the balance is paid within 30 days of the sale.
Plus Valia is another tax which is due to be paid by the seller the value of this you can get from the local tax authority. This is a tax which is levied by the local authorities and will be based on increases in the estimated value of the land the property is built on . This tax therefore depends upon the area and the state of the property market in that area at that time.
Capital gains tax is payable on the profit made on the house. The net profit is calculated using the sale price and deducting other fees such as the cost of selling, the original purchase price and an allowance which is calculated each year by the tax office. If you are a non-resident you will pay 35% on the profit made. Residents pay CGT at a rate of 15%. Residents may also find that they are exempt if the house is their main or only home and if you purchase another property for at least the same value within 2 years. A qualified tax official can advise on your obligations when selling a house.
The Sale Process
5 simple steps to remember
|#1||AGREEMENT WITH COSTALETS Before a sales process begins, an agreement is made with Costalets|
|#2||CONTRACT – ‘ARRAS’ OR ‘OPCIÓN DE COMPRAS’ When a seller reaches an agreement with a buyer, a purchase contract is signed|
|#3||DEEDS ‘ESCRITURA PÚBLICA DE COMPRAVENTA’ On the day that possession is taken of the property, you and the buyer, along with your respective representatives as well as the estate agent, meet at the notary’s office|
|#4||PAYMENT The notary receives the payment and is responsible for paying taxes and fees, as well as for passing on the final purchase sum to you|
|#5||SETTLEMENT OF TAXES If, as the seller, you are a resident of a country other than Spain, you will only receive 97% of the purchase price at the time of sale, less the plus valia tax. The 3% is paid by the buyer to the Spanish tax authority. This is a form of security to ensure that you fulfil your tax obligations and declare capital gains on your sale in Spain. Once you have fulfilled all of these obligations, you will be refunded this 3% or part thereof. Your legal representative will help you to reclaim your ‘share’, but it may take up to one year before you receive payment. A preliminary calculation of taxes can be made by Costalets but the legal representative is responsible for the final declaration. This applies to property tax, owners’ association fees, capital gains and estate agent fees.|