Selling a property in Spain can be a profitable experience, but as a foreigner, it’s important to be aware of the legal and tax implications to avoid unpleasant surprises. In this post, we guide you through the key aspects you need to consider when selling a property in Spain.
1. Choosing a Real Estate Agent and Property Valuation
Choosing a reliable real estate agent is crucial to facilitate the sale of your property. A good agent will help you properly value your property, market it, and manage negotiations. It is advisable to select an agent with experience in the local market who speaks your language or English.
2. Energy Efficiency Certificate
Before putting your property up for sale, it is mandatory to obtain an Energy Efficiency Certificate (EEC). This certificate rates the energy efficiency of the property and is required for any sale transaction. If you do not have this certificate, you could face fines and delays in the sales process.
3. Plusvalía Municipal and Capital Gains Tax
When selling a property, you will need to pay certain taxes, such as the plusvalía and Non-Resident Income Tax (IRNR) on capital gains. The plusvalía is a tax on the increase in the land value since you purchased the property. The IRNR applies to the gains obtained from the sale, and its rate varies depending on your country of residence and the amount of the gain. It is important to keep record of all the documentation regardind the purchase and also the selling, in order to adjust the taxes.
4. Mortgage Cancellation (if applicable)
If you have an outstanding mortgage on the property, you will need to cancel it before the sale. This process includes obtaining a cancellation certificate from the financial institution and registering the cancellation with the Property Registry. It is advisable to seek legal advice to ensure that this process is carried out correctly.
5. Signing the Sales Deed and Transferring the Property
The final step in selling a property is signing the sales deed before a notary. During this act, the property is transferred to the buyer, and the corresponding payment is received. It is essential that all documentation is in order before proceeding with the signing. After the sign you still must take care for supply contracts and other direct debits that should be cancelled or changed.
Selling a property in Spain as a foreigner requires careful planning and a clear understanding of legal and tax obligations. Ensure you have the support of the right professionals to carry out a successful and smooth transaction.