It is almost as important to use a professional to assist with the legal work involved in selling a property in Spain, as it is when purchasing one.
Fiscal Obligations Of Selling Property
A seller needs to be aware of some fiscal obligations when selling. And sellers of properties in Spain are usually concerned about costs of course. They want to be sure of how much they will realise after completion to transfer back home. Or to use towards the purchase of a property.
Deductions When Selling
There are several issues that sellers need to take into consideration that will be deducted from the figure they have sold their property for. These are:-
- 3% Retention for Non-Residents. If a seller is Resident then any capital gains tax on the sale will be considered in their annual tax return. However, for a non-resident the buyer of your property has to keep or retain three percent of the sales price (the deeds price). This is on the day of sale to pay to the Spanish Tax Office. This is for the Tax office to retain to consider whether you had any Capital Gains Tax to pay.
- The solicitor dealing with your legal work should apply for a refund or partial refund for you, having calculated your potential liability. Especially if you are up to date with all tax payments, although this can take some time to be returned.
- If you used an Estate Agent, then their commission will be deducted at the Notary. But this can vary considerably according to your agreement with them.
- If you have an outstanding mortgage, then you need to bear in mind the bank will charge 0.5% to 1% mortgage cancellation charge. This is on the balance of your outstanding mortgage. Plus there will be the cancellation at the Notary and Land Registry fees. This will vary (up to 1,000€ perhaps) and will probably be retained by the solicitor.
- Plusvalia tax – this is a tax based on how much the value of the land on which the seller’s property has increased over the number of years owned. It must be paid when a transfer of ownership is done. It varies according to the town hall who charges it.
Who pays utilities selling a property?
Liabilities against the property must be paid up to date. So community fees, IBI/Suma and all utility bills will need to be paid up to the day of sale. (For IBI/SUMA a sum may be retained for this). This depends on the time of the year the property is sold. So the owner in January pays the bill for that calendar year.
Solicitor Fees for Selling
The fees of your solicitor for selling a property in Spain. They should provide you with a clear explanation of all the costs. This should include those for any extra paperwork they may need to obtain for you. In order for you to sell. This might include a current Habitation Certificate and an Energy Performance Certificate.
Please contact us if we can help you with the sale of a property in the Valencia or Murcia regions or if you have any questions.