1. What are the costs of selling a property?
Estate agent commission: We charge 3% of the agreed sale price, with a minimum of 3000€, half at the signing of the private contract (“contrato de arras”/”contrato privado de compraventa”) and the balance on completion day at the Notary (signing of the “escritura de compraventa”). This commission is generally divided between the buyer and the seller.
Non-Resident Retention: If you are a non-resident owner, 3% of the sale price will be retained by Hacienda (the Spanish tax authority.) If you have been paying your annual non-resident taxes and there is no other tax owed, this money will be refunded to you.
Plusvalía municipal (Local Taxes): municipal tax based on the value of the building and the length of time you have owned the property (ask the Ayuntamiento (town hall) to calculate your plusvalía).
Capital Gains : In basic terms, whether or not you have to pay capital gains is based on the difference between what you paid for a property and what you are selling it for. However, there are other factors to take into consideration: whether you are resident or non-resident, whether you are planning to use the proceeds to purchase another property in Spain, whether you under 65 or over 65. Any of these may change your situation so the best way to proceed is to consult a solicitor experienced in these matters. If you are non-resident and owe, the 3% retention may be applied to the capital gains tax.
Debts and Charges: Properties in Spain are sold free of debts and charges. If there are any items registered against your property (such as water or electricity bills) you will need to clear them in order to complete the sale. This can happen at the notary. Speak to your solicitor for more information.
Notary’s fees: According to Spanish law the seller pays approximately 60% of the costs of the Notary and the buyer pays approximately 40%. However, this can be used as part of the negotiation process, in certain areas its normal the fees are split 50/50.
Solicitor/Gestor: An abogado (solicitor) or gestor (financlia/legal consultant) can help you organize all the necessary documents, ensure that all mortgages, etc. are cancelled, handle the 3% retention for you, etc. Fees are typically 1% of the sale price, but make sure to clarify before committing.
(This info is provided for general informational purposes only. For exact and personalized advice, please consult an independent solicitor.)
2. What do you need to sell a property?
Before we can market your property we need the following:
- Escritura (your title deeds)
- Current Nota Simple
- Latest IBI statement
- Electricity bill
- Water Bill
- Certificate of Energy Efficiency
- Contract of Sale (Encargo de venta) – We have a standard contract giving us permission to advertise your property sell your property and agreeing to pay our commission upon a sale. This states our selling fee including all marketing costs.
- Licencia de primero ocupación
- Certificado de Legalidad Urbanística
3. What about Exclusivity?
We do not do exclusivity contracts, so you free to advertise your property yourself or through other agents.