Selling Your Property in Spain
In order to sell your property in Spain, there are a couple of stipulations:
- The purchase is free of any debts
- All household bills and taxes are paid up to the date of sale
- The property is free of any tenants or occupants
You will need to provide a number of documents before the property can be marketed by an estate agent or advertised privately for sale:
- DNI or NIE and passport of the property owner(s)
- Company deeds and the DNI or NIE and passport of the Administrator if owned under a company structure
- Power of Attorney of those signing on behalf of third parties or companies (if applicable)
- Original Public Purchase Sale Deed (Escritura de compraventa)
- Cadastral Certificate (Certificado catastral)
- Licence of First Occupation (Licencia de primera ócupacion) or Occupancy Certificate (Cédula de Habitabilidad)
- Land Registry Certificate (Nota Simple)
- Energy Performance Certificate (EPC) (Certificado de la Eficiencia Energética (CEE))
- Latest local property tax receipt (Impuesto sobre Bienes Inmuebles (IBI))
- Latest Community Fees receipt (if applicable)
- Latest utility bills
- Copy of the Community Statutes (if applicable)
- Certificate with any outstanding mortgage amount
Once you have all of the above documentation in place you are free to advertise the property for sale. You can advertise with an estate agent (who will normally charge a percentage fee on the sale price of the property) or advertise the property for sale privately. We recommend using an estate agent who will manage the viewings, publicity and dialogue with a buyers solicitor once an expression of interest in purchase has been made.
Capital Gains Tax
You should be aware that when selling a property in Spain you are liable for Capital Gains Tax on any profit you make from the purchase price to the selling price. These figures are based on those declared at the notary when you purchased the property and the amount you pay is based on the amount of profit made. For example if you purchased a property for 150,000€ and sell it for 225,000€ you are liable for Capital Gains Tax on 75,000€.
Spain's Capital Gains Tax is currently:
- First 6,000€: 19%
- 6,000€ – 50,000€: 21%
- 50,000€ – €200,000€: 23%
- Over 200,000€: 26%
If you bought a property before 1994, you may be liable to pay more tax than before as taper tax on capital gains tax has been abolished. You might be eligible for an exemption if you are over age 65 and selling your main home or if you are under 65 and selling your main home to buy another main home in Spain.
Plusvalía Tax (land appreciation tax) is a local tax based on the incremental tax value of the urban land over the period of ownership. If there is no increase in the value of the during the period of ownership, no Plusvalía tax is owed.
Mortgage Cancellation Fees
If there is a mortgage on the property, and the Buyer doesn’t exercise the subrogation, then you will have to cancel it. This must to be done in front of a Notary Public on the day of completion and registered at the Land Registry. Banks generally charge between 0.5% and 1% of the outstanding mortgage balance. The Notary Public and Land Registry fees for a mortgage cancellation vary but are generally around €800.
Even if the mortgage has been fully paid off and cancelled administratively by your bank, you need to ensure that this is registered in the Land Registry. This will not have been done unless you have signed a mortgage cancellation deed before a Notary Public.
The information above is provided as a guide and you should consult your legal representative for advice in individual cases.