Selling Property in Spain – Taxes, Legal Process & Tips for a Quick Sale

5 mins read

Depending on whom you speak to, selling property in Spain can either be easy, especially compared to the UK, or a process that tests your patience. The Spanish property market is an ever-revolving circle of buyers and sellers. People who want to sell property often ask questions about capital gains tax in Spain, the energy efficiency certificate, and land registry procedures. They also want to know about selling tax implications, estate agents’ fees, the average time to sell, and what the property prices in Spain are at the moment. So naturally, sellers want minimal costs and to sell as quickly as possible. To attract potential buyers and ensure a smooth selling process, here is what to know.

About Selling Property in Spain

selling property in spain

1: Prepare your Spanish Property for Selling

It is much harder to sell a house in Spain that has not been maintained. Before approaching an estate agent for selling, get all those niggly jobs done. If need be, repaint, de-personalise, and de-clutter. To put yourself in the buyer’s shoes, walk through your house as if seeing it for the first time.  Most house buyers in Spain aren’t looking at what is nice about the property but what repairs are needed and how much effort, time and money they will have to spend on it. Carrying out the repairs now could make the difference between a buyer choosing your property over another. Experts advise that spending money now for repairs and maintenance affects the selling process and final asking price for the better. Also know what your unique selling points are.

2: Prepare Documentation Needed for Selling

  • Property title deeds
  • Residencia card for permanent residents in Spain
  • Utility bills
  • Community statues details
  • Local council property tax receipts

buying property in spain guide

3: The Energy Efficiency Certificate of Spain

The energy performance certificate includes details about the efficiency and energy consumption of the property you want to sell. The report relates to gas, water and electricity and gradings run from A (most efficient) to G (least efficient). To gain a certificate for selling, see a registered EPC Assessor in Spain, but we assist all sellers who list their property with us to attain this. In addition, the report verifies that the property is guaranteed for ten years, adding value to your Spanish property. Properties that do not need an energy performance certificate include anything under 50 square meters or buildings used for less than four months a year.

4: About the Selling Price

It is impossible to browse the internet and get a selling price for your property in Spain, because two other factors affect the purchase price. The first is mentioned above. Secondly, market factors influence the purchase price buyers of Spanish property will pay. At the moment, selling property worldwide is a yo-yo market, thanks to the impact of the COVID pandemic and global events. Of course, browse local listings for an approximate value, but for a valuation of your property in Spain, call us today, and we can send one of our local Spanish agents around.

5: Finding Estate Agents in Spain

As a real estate agency operating in Spain, we have experience with both non-resident and Spanish resident buyers and sellers. Call us today to find out about our real estate agency selling fees and the services we offer to help sell Spanish property. Otherwise, to find another estate agent in Spain, choose one with an established selling record. Of course, sellers don’t have to use an estate agent to sell property, but we have selling skills and market reach.

6: Lawyers and Legal Fees

There are many English-speaking lawyers in Spain. So naturally, this step involves extra lawyers’ fees. House sellers don’t need one legally, but they advise and protect sellers. The lawyer will also prepare selling contracts, arrange deposits, and set a date for the house sale. Please note that sellers who back out of the agreement are liable to pay twice the deposit, whereas if buyers back out, they lose the deposit.

7: Notary Offices and Taxes in Spain

The notary office will work with the Spanish land registry to register the new title deeds, let you know the land registry fees to pay, and ensure all selling documentation is completed as per legal requirements. All notary offices charge the same set standard fee. Usually, buyers in Spain pay notary fees but do check this beforehand. Once all details have been taken care of, the property seller, the buyer, and legal representatives will attend the notary office, which will take care of all details, including taxes.

8: Capital Gains Tax When Selling

Sellers of property in Spain can deduct capital gain fees on any profit from house sales. Otherwise, expect to pay capital gains tax of between 19 to 23% on profit. Any Spanish tax resident who will buy another property in Spain for permanent living may be eligible for exemption from capital gain tax. (If you are selling to buy, browse our portfolio of apartments and villas here.) Note: If you are a non-resident, the property buyer must pay 3% taxes, but you can deduct this from the capital gains tax.

9: Plusvalia Property Taxes in Spain

The Plusvalía Spain taxes is the urban land value tax applied by the Spanish tax office. Sellers usually pay this local municipal tax, but it is acceptable to negotiate this with the buyer. The local tax is calculated on the increase in urban land value, which applies because most cities and towns in Spain have a local infrastructure investment plan. Hence their constant investment into surrounding communities increases land value, and the Plusvalia municipal tax captures the value back. Please note that Plusvalia municipal only applies to property in urban areas, not the countryside. Property sellers must pay the tax to the local town hall of the Spanish tax authorities within 30 days of selling.

10: Two Tips for Selling in Spain

About Selling Fully Furnished Properties: If you plan to sell your home in Spain fully furnished, do take time to draw up with the house buyer a list of what is included in the property sale and what isn’t. Ensure this list accompanies official property contracts. It solves many future problems.

Foreign Currency Exchange: All property sales in Spain happen in Euros, but after selling, if you plan to move the property sale proceeds, out of Spain, to a country with another currency, do use a foreign exchange company rather than a bank. They charge fewer fees and give better exchange rates.

Contact Us: To know more about selling property in Spain or if you would like to enlist our services, please get in touch with us here. Alternatively, we have also talked more about preparing and staging your home for a quick sale, and many of these points apply to property in Spain.

pros and cons of buying property in spain

About Natalie

Natalie is a dedicated real estate professional currently working at Spot Blue International Property. With over a decade of experience in the industry, she has acquired a wealth of knowledge and expertise regarding global properties.

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