If you’ve been thinking about selling your property in Spain, or even if you are just interested in finding out about the process, we’ve outlined all the steps you will need to go through as a seller, and the best tips to make the selling process as smooth as possible.
Why List Your Property With an Estate Agent?
It is possible to sell your property on your own without the use of an estate agent, but it can be difficult to find buyers, and the preparation of all the correct paperwork can be a stressful and time-consuming process.
Some estate agents have years of experience selling properties in Spain and their local knowledge, as well as the ability to promote your property to many potential buyers, makes the process simple and less stressful for you.
Estate agents will charge a commission fee, usually between 3-6%.
Therefore, it is important you choose the right estate agent that can carry out the process for you. Be sure to look at reviews of estate agents online, and ask for recommendations from friends and family. You can also call into an estate agent’s office and talk to them before making your decision.
Rainbow Realty is an established estate agent in Spain with over 15 years of experience helping people like you to sell their property. We are situated in a great location in Benalmadena Pueblo, and we have English and Spanish speaking agents, allowing us to talk to more potential buyers. We make the selling process as smooth as possible and take the weight off your shoulders.
Don’t just take our word for it - take a look at our excellent reviews online to see why you should list your property with us.
Have a Solicitor Oversee The Process
Having a solicitor is not compulsory, but they can help you with the selling process and give you advice on any issues that may arise. If you do not already have a solicitor, the UK Government publishes a list of English-speaking solicitors in Spain. You can find that list here
Prepare All Documents
Once you have someone who wants to buy your property, you will need to supply your solicitor with the following paperwork:
- Purchase Title Deed
- Receipt for Notary fees
- Receipt for Council Tax (IBI)
- Latest water bill and contract
- Receipt for the last payment of Community Fees
- The administrator of the Community of Owner’s name and telephone number
- NIE Number
- Certificate of Habitation
- Installation Certificates for electricity, water and gas
- Wealth and Income Tax declarations from the previous year
- Certificate from your bank showing your full name and account number
- Proof of deposit from a potential buyer (if received)
- Inventory list of any furniture that will be included in the sale
- Residencia card
- Energy Certificate
Yourself and the buyer will need to agree on a notary. The role of the notary is to stamp all the paperwork, check that all taxes have been paid, and register the property with the Spanish Land Registry. The notary ensures everything is done correctly.
The solicitor will prepare a deposit contract for you and the buyer to sign. The contract assures each party of the other’s commitment to the deal and it outlines the deposit amount (usually 10% of the agreed sale price) and specifies a date for purchase.
To close the deal, a meeting will be held between you, the buyer and their legal representatives, and the notary. If you can’t attend this meeting, you will need to grant power of attorney to your solicitor so they can attend on your behalf. The notary will then inform the Land Registry of the sale and send them a copy of the Title Deed.
The Costs of Selling Your Property
Below are the costs you have to pay when selling a property in Spain:
- Estate Agent fees (between 3% and 6%)
- Energy Certificate (between €100-€500) - can be provided by Rainbow Realty
- Capital Gains Tax (if you sell the property for more than what you originally paid for it) - see below
- Plusvalia Tax - see below
- Income Tax for non-residents (3% income tax - a refund can be claimed back if the seller believes that their liability is less than 3%) - only to be paid if the seller is not a Spanish resident
Capital Gains Tax
Capital gains tax is a tax on the profit you have made on the property (the sale price minus what you originally paid for it). All other expenses relating to the sale of the property (estate agent fees, energy certificate, solicitor expenses) can be deducted from the capital gains tax. The tax is paid using this method: 19% for the first €6000, 21% from €6000 to €50,000, and 23% from €50,000 onwards.
For example, if you bought a house in 2005 for €200,000 and sell the house in 2019 for €350,000 you will need to pay capital gains tax in the following way:
€350,000 - €200,000 = €150,000
19% for the first €6000 (6000 x 0.19)
21% from €6000 to €50,000 (50000 x 0.21)
23% from €50,000 onwards (€94,000 remaining so: 94000 x 0.23)
€33,260 to be paid in capital gains tax
The seller does not have to pay capital gains tax if they are over 65 and have been officially living in the property for at least the last 3 years.
Plusvalia is a tax over the increase in the value of the land that the property is on, paid to the local town hall. It is calculated based on: the period of ownership, the location of the property, and the ‘cadastral’ ground value.
The plusvalia tax can be requested at the local town hall where the property is located.
Plusvalia is usually paid by the seller. However it can be negotiated to be paid by the buyer.
Tips To Help Sell Your Property
To make a great first impression on potential buyers, consider the following tips:
- Clean your house before viewings, declutter and remove any personal items
- Complete any minor repairs
- Price your home realistically - Rainbow Realty will help you with your property evaluation
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