Sellor´s guide

STEPS TO BE TAKEN INTO ACCOUNT AT THE TIME OF THE SALE OF A PROPERTY IN SPAIN (A SELLER’S GUIDE)

If you have decided to sell your property in Spain, the multilingual lawyers of our firm in Spain would advise you to proceed with the reading of the following tips. Here, you will learn what documents should be prepared, who must sign the sale’s Title Deed in Spain and what Spanish taxes you must settle at the time of the sale.

First, we advise that you contact a real estate agent in the area. As a professional, he or she will be able to help you to find a buyer for your home, and will advise you about the sale, market circumstances and preparation of an inventory of the items that will remain in the property.

The documentation to be prepared for the sale should include the following:

1. The Purchase Sale Title Deed granted when you acquired your property
2. Identity documentation, passport and NIE number certificate
3. IBI (rates) and receipts for other supplies on the property, such as water and electricity
4. Community certificate stating that there are no debts owed for the community fees associated with the property
5. Energy certificate

All owners must sign the Purchase Sale Title Deed. If the property was acquired using the common assets of a married couple, both the husband and wife should sign. Both must sign if the property is the marital home.

With reference to the Spanish taxes arising with the sale, you will have to take into account the following:

a) Plusvalia tax (Impuesto sobre el incremento del valor de los terrenos de naturaleza urbana) This tax is to be paid to the Town Hall where the property is located, and is based on the increase of the value of the land and the time lapsed since the acquisition of the property.

b) Vendor capital gains tax In the event that there is a gain resulting from the sale of your property in Spain, this income is subject to tax at a rate applicable to 21%, based on the difference between the transmission and acquisition values of the property.

In the case that you are non-resident taxpayer in Spain, the buyer, whether or not a resident, is obliged to retain and deposit to the Public Treasury 3% of the purchase price. This amount is considered payment of the capital gains tax of the seller resulting from the gain.

If there is no gain, or if the retained amount is higher than the quota of the tax to be settled, you will be entitled to claim for a reimbursement of the excess, or the total paid amount, as appropriate.

Should you wish to obtain more information, please do not hesitate to contact one of the English-speaking efficient lawyers with our firm in Spain. At Arcos & Lamers Asociados, your Spanish accountant and tax adviser are under one roof, and we will do all we can to assist you throughout the process of selling, collecting the necessary documentation, and advise you on all taxes and expenses arising from your sale.