Property owners in Spain may decide to sell their property for various reasons. You might find that you no longer use your Spanish property, you could be selling an investment property for a profit, or you may have inherited the property and want to cash in on its value. Regardless of the reason, there are several important considerations when selling property in Spain.
When selling property in Spain, it’s crucial to be aware of the associated costs, any outstanding debts secured against the property, and other legal obligations.
Do I Need a Lawyer to Sell My Property in Spain?
If you’re selling property in Spain, you must be present at the completion meeting. If you cannot attend, you can appoint an experienced, independent legal adviser who specializes in Spanish property law and grant them power of attorney to handle the transaction on your behalf.
An independent Spanish property lawyer can save you significant time by coordinating with the buyer’s lawyer regarding the necessary documentation and addressing all their inquiries.
As the seller, you are responsible for settling all debts associated with the property and providing an Energy Performance Certificate. Additionally, you will need to cover the estate agent’s fees for marketing the property upon completion of the sale, as well as a municipal tax.
There may be some liabilities, such as the IBI, that you cannot pay at the time of completion because you have not yet received the payment document. In such cases, you can agree with the buyer to retain the amount of the liability or a proportion of it from the purchase price.
If you are selling a property in Spain and are not a resident for tax purposes, 3% of the selling price will be retained to cover capital gains tax. If no tax is due, you may be eligible for a refund. Contact us for assistance in reclaiming the funds if you believe you are entitled to a refund of the 3% retention.
What Documents Do I Need to Sell My House in Spain?
Your specialist solicitor can advise you on the necessary documents to sell your property in Spain. Typically, these include a copy of the sale and purchase agreement, receipts for local property tax payments, recent utility bills, details of any community of property owners, and your NIE number.
How Much Tax Do You Pay When Selling Property in Spain?
When selling your property, if you make a gain, you will be liable for capital gains tax in Spain on the net gain. This tax is 19% for nationals of EU Member States and 24% for nationals of non-EU countries.
What is Plusvalia Municipal?
Plusvalia Municipal is a local tax charged by the town hall on the notional increase in the value of the land from the date of acquisition to the date of disposal. Property owners must pay this tax when selling a property in Spain. If the owner is not a Spanish resident, the purchaser will retain an amount to cover this liability.
What to Do If You Can No Longer Afford Your Spanish Property?
If you own a property in Spain with a mortgage but can no longer afford it, an independent legal adviser can assist you with voluntary repossession and negotiate with your lender to explore other options.
We have also prepared a video guide on what to do if you can no longer afford your Spanish property, which you can find below.
How We Can Assist You with Selling Your Property in Spain?
For over 19 years, Your Spanish Solicitors in Spain has been helping individuals buy and sell property in Spain. Our dedicated team of Spanish property solicitors, based in the UK, Ireland and Spain, can provide specialist advice and assistance for transactions on mainland Spain, the Balearic Islands, and the Canary Islands.
You can rely on our knowledge and experience of Spanish business culture and legal system to guide you through any cultural, linguistic, and legal complexities, giving you the confidence to proceed with your property transaction.
For the sale of a Spanish property, our fees are £2,750 plus VAT and disbursements for properties with a selling price up to €350,000.
If the selling price exceeds €350,000, we will need additional information to provide a price quotation or estimate. This includes details about the type of property, the total selling price, the location, and whether the property is encumbered by any third-party funding or other creditors. We will be happy to provide a quotation or estimate once we have this information.
For example, if you are selling a property in Spain for €500,000, our fees will be approximately £4,250 plus VAT and disbursements. The main disbursement will be a municipal tax, calculated based on the property’s rateable value (valor catastral) and the duration of ownership.
A typical Spanish property sale may take six to eight weeks to complete once a buyer has been identified.
Your Spanish Solicitor will handle your case, with the possibility of delegating certain tasks to colleagues who have extensive experience in Spanish property sales.