Posted in: Deeds Issues, Legal
Selling a property in the Alicante or Murcia regions can be a straightforward process when handled correctly. However, many owners—particularly non-residents—encounter unexpected tax issues and delays. And pay too much tax simply because they did not receive proper legal advice from the outset.
In many cases, sellers focus primarily on securing a buyer, without fully considering the legal and tax implications of the transaction. This can result in overpayments, complications with the Spanish Tax Office, or avoidable issues arising after completion.
Taking advice at an early stage not only protects your position, but also ensures that the sale proceeds efficiently and with complete peace of mind.
When selling a property in Spain, several legal and financial elements must be addressed together.
These typically include capital gains tax, the 3% retention applied to non-resident sellers and plusvalía (municipal tax). Additionally any outstanding debts or charges linked to the property, such as community fees or mortgages.
Each of these aspects must be correctly calculated, declared, and settled as part of the conveyancing process. Without proper oversight, it is not uncommon for sellers to pay more tax than necessary. Plus available deductions, or experience delays at the notary stage.
For non-resident sellers, Spanish law requires the buyer to retain 3% of the purchase price and pay this amount directly to the Spanish Tax Office.
This retention is not the final tax liability, but rather an advance payment towards any capital gains tax that may be due.
In many situations, the actual tax payable is lower than the amount retained. The seller may be entitled to a refund. However, recovering this amount requires the correct submission of tax forms, supporting documentation, and strict compliance with deadlines.
Without proper legal guidance, these steps are often overlooked or incorrectly handled.
Due to the high number of international property owners in Alicante and Murcia, we frequently assist clients who have experienced avoidable complications, including:
• Incorrect tax calculations at the point of sale
• Failure to submit post-sale tax declarations
• Delays in receiving sale proceeds
• Disputes between joint owners
• Tax being retained despite the property being sold at a loss
• Poor coordination between estate agents, lawyers, and tax advisors
All these issues are rarely due to the complexity of the law, but rather a lack of coordinated and experienced legal oversight.
A property sale is not simply an administrative transaction—it is a legal process with significant financial consequences.
By instructing an independent solicitor, you ensure that your interests are fully protected throughout.
It is important to review the legal position before the sale and ensure taxes are correctly calculated. Also to manage the transaction at the notary, and deal with all post-completion requirements.
For this also ensures that any overpayments are identified and, where applicable, reclaimed.
Most importantly, it provides clarity, structure, and protection at every stage of the process. We have had many sales where unfortunately sellers signed a sale contract not realising that a probate of one of the owners must be done first. In Spain there is no automatic inheritance by co-owners.
Many of the issues that arise after a property sale are the result of incorrect information, agents not checking paperwork and missed deadlines or incorrect filings.
Tax declarations must be submitted within strict timeframes, and any errors made at completion can be difficult and costly to rectify later.
Seeking advice early allows these matters to be handled proactively, reducing risk and avoiding unnecessary delays or financial loss.
At Molina Solicitors, we provide a comprehensive service for clients selling property in Alicante and Murcia.
Our work includes advising prior to sale, managing the conveyancing process, representing clients at notary. And importantly, ensuring full tax compliance, and assisting with any disputes or complications that may arise.
Where applicable, we also handle post-sale matters, including the recovery of overpaid tax.
Our aim is to ensure that the process is handled efficiently, correctly, and with clear communication throughout.
If you are considering selling a property in Alicante or Murcia, or are already in the process, it is advisable to seek legal advice as early as possible.
A properly managed sale not only avoids problems but can also make a significant difference to the final financial outcome.
We would be pleased to review your situation and guide you through the next steps.