Selling Property in Spain

Property owners sell property in Spain for many reasons.  Perhaps you find that you no longer make use of your Spanish property, perhaps you purchased the property as an investment and are selling for a profit or perhaps you inherited the property and simply wish to realise the value.  Whatever the circumstances, if you are selling property in Spain there are some issues that you need to consider.  

When selling property in Spain you need to be aware of the costs of the sale, any outstanding secured debt and any other legal obligations.

Will I need a lawyer to sell my property in Spain? 

If you are selling property in Spain you will be required to be present at the completion meeting. If you are not able to be present it is possible to engage an experienced, independent legal adviser specialising in Spanish property law and grant them power of attorney to arrange the transaction on your behalf.

Your independent Spanish property lawyer can save you a wealth of time by liaising with the buyer's lawyer in relation to the documentation required to sell the property, and answering all of their enquiries.  

What are the costs of selling property in Spain? 

As the seller, it is your responsibility for paying all the debts associated with the property and providing an Energy Performance Certificate.  You will also be expected to pay estate agent’s fees for marketing the property upon the completion of the sale, as well as a municipal tax upon sale.

You may find that there are some liabilities that cannot be paid by you upon completion, for example the IBI, as you may not yet have received the payment document.  If that is the case then it can be agreed with the purchaser that the amount of the liability or a proportion of that amount be retained from the purchase price.  

If you are selling a property in Spain and you are not resident in Spain for tax purposes, then 3% of the selling price will be retained upon the sale on account of capital gains tax.  In the event that no tax is payable you may be able to claim a refund.  If you think that you may be entitled to a refund of the 3% retention please contact us and we can assist you in reclaiming the funds.  

What documents do I need to sell my house in Spain?

Your specialist solicitor can advise you on what documents you need to sell your property in Spain. However, this will usually include: a copy of the sale and purchase documentation; receipts for local property tax paid; copies of recent utility bills; details of the constitution of any community of property owners; your NIE number.

How much tax do you pay when selling property in Spain?

When you come to selling your property, if you make a gain you’ll have to pay capital gains tax. You’ll be liable to capital gains tax in Spain on the net gain that you make. That gain will be taxable in Spain at the rate of 19% if you’re a national of an EU Member State and at the rate of 24% if you are a national of a non EU country.

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 on which the property is built from the date of acquisition to the date of disposal. Property owners are obliged to pay plusvalia municipal when they sell a property in Spain.  If the owner is not a Spanish resident then the purchaser will retain an amount to cover that liability.

What to do if you can no longer afford your Spanish property

In cases where you own a property in Spain mortgaged to a bank, but can no longer afford to, then an independent legal adviser can assist you with voluntary repossession and enter into negotiations with your lender to assess other options available to you.

We have also prepared a video guide to what to do if you can no longer afford your Spanish property, which you will find below.  

How we can assist you with selling your property in Spain

For over 10 years E&G Solicitors in Spain has been helping individuals buy and sell property in Spain.

We have a dedicated team of Spanish property solicitors based in our offices in the UK and Spain who can provide you with specialist advice and assistance in transactions on mainland Spain, the Balearic Islands and the Canary Islands.

You can rely on our knowledge and experience of Spanish business culture and Spain’s legal system to help guide you through any cultural, linguistic and legal complexities and above all to give you the confidence you need to proceed with your property transaction.

Next steps if you are selling property in Spain

If you are planning to sell your property in Spain, please contact us for a free initial consultation.  You can contact us by email at info@solicitorsinspain.com, by telephone on 020 3478 1420, or by completing our contact form

Testimonials

E&G Solicitors in Spain handled our case with first-class professionalism from start to finish. The communication was nothing but first class. Jonathan provided invaluable advice in buying abroad, Stacey made purchasing less stressful, and Irene was very good in sorting out our issues from Spain. We would highly recommend E&G Solicitors for their professionalism and making the process appear easy with no stress.

Jason & Donna Anthony, West Norfolk