How do I sell my property?

Having decided to sell your property you will need to produce the following:-

A copy of your title deeds “escritura.”

Receipts to prove your annual property tax is paid up to date.( community fees if applicable.)

  1. Proof of payment of utility bills i.e. water, electricity, telephone.
  2. Copy of residencia card or EI6, passport and NIE form.

5.If you have extended or built a swimming pool you will need to up-date the description of the property in the escritura.

To do this you will need:

  • the planning permission
  • a copy of the building plans
  • a letter from an architect stating that the work has been finished in accordance with the plans

If the extension is more than 4 years old you can apply, via your asesoria for a "certificado de antiguedad" which means that you do not need the above documentation.

You can then have the escritura amended at the same time as completing on the sale of your property at the notary's office. There will be a fee charged by your lawyer. Usually this will depend on what needs to be up-dated. You should always ask for a quote first.

6. If you have a mortgage, you will need to speak to your lender/bank and explain you will be canceling your mortgage-generally there is a 1% cancellation fee to the bank plus a fee to remove the mortgage from the property. On the day of completion, you or your lawyer will need to obtain a certificado de deuda from your bank which will show the exact amount to settle your mortgage. This document must be shown to the notary prior to signing.

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Once a buyer has been found for your property, a deposit is requested from the buyer. The deposit paid is generally 10% but can be modified based upon buyer´s and seller´s consent. At this stage the completion date is set.

Completion date must be mutually agreed between both parties.

In general, completion date is set from between one month to three months, dependant upon buyers situation i.e. cash or requiring a mortgage to purchase.

Completion day.

Completion takes place in the office of the notary in Spain.

 All owners stated on the escritura will need to be present to sign on completion day.

If one or all named owners cannot be present, they must make a power of attorney “poder” to allow another designated person, in general a lawyer, to sign on their behalf.

You will need to bring the documents stated in the 5 points above.

The new title deed will be translated to you within the notary office and then you will sign for the sale in front of the notary and receive a banker’s cheque for the declared purchase price.

Keys to the property and receipts of paid utility bills and tax are then given to the new owner so that they can change the utilities into their name.

 

Selling Costs.

When you sell a property in Spain you must pay tax to the tax office “Hacienda”.

This tax is based upon the profit you have made on your property.

 Foreign Non-Residents.

You are required to pay 18% on the profit from the sale f your property.

The profit is the difference between the “declared purchase price” and the “declared selling price.”

On day of completion, 3% of the declared selling price, will automatically be retained by the buyer’s lawyer, to pay directly to the Spanish Tax agency.

This 3% tax paid upon completion is a deposit on the 18% of the profit made on the sale.

You can choose to pay 18% on the profit should this amount equate to less than the 3% on the full declared price.

Within one month following the sale of your property, your lawyer/ asesoria will make an application to claim back the 3%.Then you will be able to pay 18% on the profit of the sale.

  

Foreign Residents.

In order to qualify as a foreign resident you must prove you have been living in Spain for 3 or more years.

You must provide either:-

  1. 3 years tax returns.
  2. An escritura in your name for more then three years.
  3. A certificate from your town hall to say you have been registered there for more than three years.
  4. Prove that you intend to continue living in Spain by providing a contract to purchase a new home or rental contract for at least one year.
  5. Provide either your residencia card or E16 certificado de residencia.

 Your lawyer will then apply for an exemption certificate 02 from the tax office to state you will be exempt from the usual 3% retention.

 Foreign Residents over the age of 65.

 If you are selling your primary residence, you are not required to pay capital gains tax.

You will be asked to prove that you qualify as a foreign resident within Spain. (See 5 points above for foreign residents.)