How to Sell Your Property in Spain in 2016?

How to Sell Your Property in Spain in 2016?

 If you’re looking for the most up-to-date information on how to sell your property in Spain in 2016, you have come to the right place. Spain has largely recovered from the economic recession of 2008 and property prices are back to the highs of 2006 – almost! So if you’re looking to sell your Spanish villa as quickly as possible, read the detailed instructions given here very carefully.

First, it is important to understand that the process of selling a property in Spain is the same as buying a house. You will need to get in touch with the right UK estate agents, someone you feel comfortable with and can trust.  Now, the charges differ from one estate agent to another; so, be clear about your expectations and have a written agreement made with the estate agent.

Have all the paperwork related to the property close at hand. This means having the original title deeds of the property, local property tax receipts, copies of utility bills –water, gas and electricity bills, all the details related to the community statutes, community bills and an official residencia card – which you will require in order to prove your Spanish residency status.

Once you find the right buyer for the property, visit the local notary along with the buyer and fill up the paperwork related to the property purchase. If the notary confirms that all the paperwork is in perfect order, you can go ahead with the process. The Land Registry is done on the same day and a copy of the title deed is sent to the buyer a few days later.

If you are not an official resident of Spain, 5 percent of the purchase price will be held back by the buyer, who pays this amount to the local tax authorities after the completion of the sales process. Any taxes due on the property will be paid for using this money.

If the taxes to be paid are less than 5 percent of the purchase price, you are entitled to a refund as the seller. If the taxes are more than 5 percent of the purchase price, you will be required to pay the balance within 30 days of the sale taking place.

There are other taxes to be paid such as the Plus Valia, which amounts to a couple of hundred Euros. This tax is levied by the local council depending on the estimated increase in the value of the property. It depends on the area of the property, the state of the market and other factors. The Plus Valia is usually included with the sales agreement.

The capital gains tax that you need to pay depends on whether you are a resident of Spain or a non-resident. If you are a resident of Spain, you will be required to pay a capital gains tax of 15 percent, while if you are a nonresident, your capital gains tax is calculated at 35 percent.

If you are a resident of Spain and the house being sold by you is your primary property, then you are exempt from paying capital gains tax, but only if you purchase another home of the same value in Spain within the next 2 years.

It is important to hire a lawyer to help you with the sale process as it would be hard for you to handle all the paperwork on your own. Any lawyer hired by you should have a good reputation within the expat community and should have an excellent command of both English and Spanish. 

Leave a Comment

WorldWideGroup © Copyright 2017 all rights reserved