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Having all of your paperwork in order will help you sell your Spanish home faster. However, for a seamless and straightforward procedure, you'll need the following crucial documents:
In Spain, the procedure for selling a house is as follows:
The good news is that the buyer and their lawyers will do the majority of the work. After completing the appropriate due diligence investigations and satisfaction with the results, the attorney will draft a deposit contract for both parties to sign. Payment of a deposit (usually 10% of the agreed-upon sale price) guarantees each party of the other's commitment to the agreement and establishes a purchase date. If the buyer cancels, they forfeit their deposit. If you, as the seller, breach your agreement, you may be required to pay your prospective buyer twice the value of the deposit as compensation.
The transaction will be closed in the form of a meeting attended by you, the buyer, their legal representatives, and the notary. If you are unable to attend, you must provide power of attorney to a legal representative so that they may act on your behalf. The notary will notify the Land Registry of the transaction and provide a copy of the title deed to them.
As the vendor, you should expect to pay:
Also, be mindful that if you are moving funds from the sale back to the UK, WorldFirst's customised foreign exchange solutions may be able to save you time and money.
Capital gains tax (CGT) is a tax on the profit you made on the sale of your home - the sale price less whatever you paid for it. Before calculating the price, the costs of selling it, such as estate agency fees, can be subtracted. In addition, the tax office calculates a yearly allowance. Depending on the magnitude of the gain, the CGT rate ranges between 19% and 23%.
If you have resided in Spain for three years and reinvest the proceeds from the sale of your principal residence, you may be excused from paying CGT (which you must then live in for the next three years). This house can be in any EU member state, but we urge you to obtain financial counsel because laws often change.
Plusvala is a local municipal tax based on the rateable or cadastral value of the land and the number of years after it was purchased. Plusvala, which is generally a few hundred euros, is usually paid by the seller. However, by law, both parties can negotiate who pays the tax, typically paid within 30 days after the transaction.
If you are not an official resident of Spain, the buyer must pay the tax authorities 3% of the purchase price upon completing the transaction. This will be deducted from any capital gains tax liabilities you may have. You must settle any remaining debt within 30 days of the transaction, or you may request a refund if applicable.
It is worthwhile to put some thought and work into things to reduce the average time-to-sell from 10 months to something more reasonable:
Take out your belongings and simplify, redesign in neutral colours. Also, add mirrors and plants to redress the house. Make it as light as possible and get rid of any traces of your pets.
Take top quality photographs of the property and select the best agents to market your home.
If you were unlucky enough to buy when Spanish home prices peaked in 2007 but wish to sell now, you might have to take a loss. On the other hand, if things don't go quickly enough for you, be ready to make an offer.
Make your prospective purchasers' lives as simple as possible by compiling copies of all essential paperwork you can get your hands on into a complete sales pack.
Contact us today to sell your property in Spain Fast to overseas investors