The process of selling a property in Spain: a step-by-step guide to get the best price in the shortest possible time #RealEstate #Foreigners #Selling
If you own a Spanish property and it’s time to sell up, read on. We’ve put together a complete guide to selling property in Spain. This includes all the info you need on the selling process, fees, taxes, timescales, legal requirements and much more.
The process of selling a property in Spain: a step-by-step guide
So, how does the property sales process actually work in Spain? Let’s run through the main steps, so you know exactly what to expect.
a) Find an estate agent
You don’t have to use an estate agent to sell your property in Spain, and listing it on an internet property site yourself could save you some hefty commission fees.
However, an estate agent could be a smart investment. Not only do agents have the local knowledge and expertise to sell your property at a good price, but they can take care of time-consuming tasks like showing buyers around the property.
To choose an estate agent, it’s a good idea to look for English-speaking agents with experience of working with UK sellers and expats. A personal recommendation from someone you know is ideal.
Otherwise, you should look for a licensed, accredited agent who is registered with a professional body such as the Official School of Estate Agents (Colegio Oficial de Agentes de la Propiedad Inmobiliaria or API)³. Other trustworthy associations include AIM, MLS and ACI.
b) Advertise the property
Now it’s time to put your property on the market and advertise it to potential buyers. Some preparatory work to spruce up the property, along with taking great photos, is essential. Next, your estate agent will play a central role in advertising the property, but you can also list it on popular property sites such as:
Fotocasa.es
Idealista.com
Enalquiler.com
c) Find a solicitor
It’s not mandatory, but it’s a very good idea to appoint a real estate solicitor to give you advice and oversee the legal and administrative aspects of the sale. You can count on Easylex Lawyers to do so. Our team of English speaking lawyers in Marbella will provide specialist and confidential advice during the process.
d) Choose a notary
In Spain, el notario plays a crucial role in managing the paperwork, taxes and registering the sale with the Land Registry. They play a neutral role in the transaction, and are there to make sure everything is done according to the letter of the law.
Once you’ve accepted an offer, you’ll need to agree on a notary with the buyer. There are around 3,000 notaries in Spain and they all charge the same standard rate. We will provide you with all the contacts you need.
e) Prepare the documentation
Here’s what you will need to have ready to make sure the sale proceeds smoothly:
The property’s title deeds
Copies of utility bills
Receipts for local municipal tax (IBI) paid for the property
Your residency card (if applicable)
An inventory of furniture and other fixtures which will be included in the sale
Details of any relevant community statutes.
f) The deposit contract is drawn up and signed
Once the buyer’s solicitor has completed all the necessary due diligence checks, it’s time to sign the deposit contract. This preliminary contract will be prepared by the buyer’s solicitor, and both parties will sign. A date is specified for the completion of the purchase.
g) The deposit is paid
At the same time the preliminary contract is signed, the deposit will be paid by the buyer. Just like in other parts of the world, the deposit is used as a firm sign of commitment to the transaction. We’ll cover how much a deposit typically is in Spain, and what happens to it if either buyer or seller change their mind, in just a moment.
h) A meeting is held to close the transaction
To finalise the sale, a meeting will be held between the buyer, seller and their respective legal representatives. The notary will also be present. This is where the contract of sale (escritura de compraventa).
The notary then informs the Land Registry of the sale and sends over copies of the title deeds. The final balance is transferred to you, and the buyer gets the keys to the property.
i) How much is the deposit?
The typical deposit in Spain is 10%, just like in many other countries including the UK. But what happens to the deposit if either party changes their mind?
If you (the seller) pull out of the deal, you may have to pay the buyer twice the amount of deposit they paid. This is seen as a form of compensation.
If the buyer backs out of the purchase, they will lose their deposit.
j) How long does it take to sell property in Spain?
The time it takes between putting your property on the market and finally handing over the keys can vary in Spain. It depends on where your property is located, and demand for your type of property in the market. The average time to sell a house in Spain in 2021 was around 5 months.
However, there are a few things you can do to improve your chances of a quicker sale in Spain. Here are some tips:
Take professional quality photos with good lighting - listing sites such as idealista.com recommend uploading as many as 25-30 photos
Make good use of online real estate listing portals, social media advertising and other digital marketing methods
Include a floor plan in online listings
Consider uploading a video or virtual tour of the property
Research the market and seek expert advice to set a competitive sale price
Declutter and deep clean the property - it’s recommended to remove personal items and ‘dress’ each room ready for viewings.
Take time to craft an appealing property description, highlighting and ‘selling’ its best features.
Fees and taxes for selling a property in Spain
Now we come to the important part - how much it’ll actually cost you to sell a Spanish property. Let’s run through the main fees and taxes you need to know about.
What fees will I pay as the seller?
The good news for sellers is that in Spain, the buyer will pay many of the fees associated with the sale. But you will still have some fees to pay. These include the following:
Estate agent fee - if you use an agent to sell your home, expect to pay around 3-6% of the sale price in commission
Fee for energy performance certificate - this can cost between €150 and €300.
If you don’t live in Spain and have a Spanish bank account, you may also face fees when transferring the proceeds of the sale back home to the UK.
Property taxes for sellers
On top of fees, owners of Spanish properties may also have certain taxes to pay when they sell up. Here are the key taxes to watch out for:
a) Capital gains tax
Capital gains tax (CGT) is due on the profits made from selling a property in Spain. So, the difference between the sale price, and the price you initially paid for the property.
The rate of CGT depends firstly on your residency status:
If you’re a non-resident, it’s set at a flat rate of 19%.
But if you’re a Spanish resident, different rules apply. The rate of CGT is calculated on a sliding scale depending on how much profit you make.
Here are the current rates:
Profit from sale | CGT rate |
|---|---|
First €6,000 | 19% |
€6,000 to €50,000 | 21% |
€50,000 to €200,000 | 23% |
€200,000+ | 26% |
However, there’s an important exemption which could help you avoid paying capital gains tax altogether. You can apply for it if you meet all of these three conditions:
You’re a Spanish resident
You’ve lived in the property you’re selling for at least three years
You plan to use the proceeds of the sale to buy your new main residence in Spain.
b) Plusvalía tax
You may also have heard of another Spanish property tax known as land appreciation tax, or plusvalía municipal. This is a tax due on the increase in value of a property since it was last sold. It’s calculated based on the value of the property and other factors, and rates are set by the local municipality. It is often paid by the seller, but you can negotiate with the buyer over who pays it.
However, there’s important news for sellers on the plusvalía tax. In October 2021, the Spanish Constitutional Court temporarily annulled the tax, due to a ruling that the way it is calculated is unconstitutional. Whether or not it will be reinstated remains to be seen, but for now - sellers won’t have to pay plusvalía when they sell a property in Spain.
In conclusion, selling property in Spain can be a complex process, but with the help of a team of specialised lawyers like us, it can be much easier and safer. Easylex Lawyers is here to help you every step of the way and make sure everything goes according to your needs and desires. Don't hesitate to contact us for more information and to start planning your new life in Spain. We look forward to hearing from you!