Selling your property in Spain

Selling your property in Spain


Are you considering selling your property in Spain in a professional manner? We are happy to help you with this. With Experience Estate S.L., you have the right partner at your side.

After viewing your property, we will inform you about the realistic market value of your home.
We photograph your home and place an expose in our offices and on various Internet pages. Our well-structured web page has been successfully added into all major search engines.
Your home will also appear on this pages. We also place regular advertisements in foreign newspapers and magazines.

Through good cooperation with other brokers and partner offices in various countries, we can promote your object efficiently.

When your house is successfully sold by our office, we will arrange everything for you: The necessary papers, preparing contracts with lawyer / notary, changing electricity, water and gas, phone etc. and of course the payment of the agreed purchase price to you.

Costs of selling your property in Spain:

If you intend to sell your property in Spain you need to keep in mind that in this process the seller also has to deal with some expenses.
Below we will give you an overview of the expenses on behalf of the seller.
Experience Estate S.L. is happy to make a complete calculation for you during a personal meeting so you do not get any unpleasant surprises after your property is sold.

Capital Gain Tax (Impuesto sobre incremento de Patrimonio de la venta de un bien inmueble)

If you sell your home with a profit then you have to pay capital gains tax in Spain. This tax is officially called Impuesto sobre Incremento the Patrimonio de la Venta de un bien Inmeuble. At this tax, it is important whether you are resident or non-resident. In some cases you are exempt from this tax.

How is the capital gains tax calculated?

The profit is the difference between the selling price and the price at which you bought the property. This price will be corrected by some inflation adjustments . This correction takes place by official tables of the Spanish government. On the remaining amount you can deduct several expenses like: any attorney and agency fees and the cost of rebuilding or renovation.

Capital gain tax for residents.

21% on the amount between € 0 and € 6,000
25% on the amount between € 6,000 and € 24,000
27% on the amount above € 24,000

The tax is charged to the income tax. You have to pay the tax for the year in which the property is sold.

Capital gain tax for non-residents.

Non-residents pay 21% tax on the profit on the sale.

If you are a non-resident selling your property in Spain than standard 3% of the selling price is retained as capital gains tax.

Since the Spanish housing market has now collapsed, currently fewer people will make a profit on the sale of their home. If you are eligible for a refund of overpaid capital gains tax than you have 3 months time after transfer of the house to submit an application to the local tax office (Delegación de Hacienda). Through the so-called 210-form you can request the refund.

The Spanish tax will repay the overpayment in the next fiscal. As a non-resident you should appoint a Spanish lawyer or a Spanish resident as Tax representative.

Exemption from capital gains tax.

In the following cases, you do not have to pay capital gains tax:

1. If you are using the profit of the sale for buying a new home in Spain. The condition is that you have lived at least three consecutive years in your current home, you are a resident and that your new home is your principal residence.
2. If you are a resident, older than 65 years and have lived at least three consecutive years in your current home.

Plus Valia

The Plusvalia, literally ‘added value’, is a municipal tax levied on the sale of a home. It is calculated based on the cadastral value of the property (Valor Catastral) and based on the number of years the property has been in your possession. In the heyday of the Spanish housing the Valor Catastral tended to be significantly lower than the market value of the home. After the bursting of the Spanish property bubble the Valor Catastral is often higher than the market value.

The Plusvalia is actually a tax on the value of the land on which the house stands. The municipality says that the land has risen in value, since all kinds of infrastructure improvements have been made in the area over the years. For example, the maintenance of existing roads or building new roads, construction and maintenance of the sewerage, street lighting etc.

The amount payable to Plusvalia therefore depends on the Valor Catastral and the period in which you have had the home ownership: the longer the period, the higher the amount of tax. The amount can really add up. It is therefore wise to ask your broker or attorney to find out in advance how much you have to pay Plusvalia. For this they can visit the town hall. At the town hall, they can calculate exactly how much Plusvalia you have to pay. They do this by using the registrated value in the land register. Now that the housing market has collapsed, you can consult with the municipality to arrive at the lowest possible value.

When setting up the contract you can agree who pays the Plusvalia, the buyer or the seller. In the past, when the Spanish housing market was still booming it was usually paid by the buyer. Nowadays, however, the roles are reversed and the seller pays the Plusvalia.

The Plusvalia must be paid within 30 days after the sale of the property. You can pay at the town hall. The buyer may also require that the Plusvalia is deducted from the sale price. This is to prevent that the seller leaves without paying. In this case, the purchaser would have to pay the Plusvalia. For the buyer, it is reassuring to know that he did not pay for the Plusvalia.

Certificado de Eficiencia Energetica (Certificate of Energy Efficiency)

The “certificado de eficiencia energetics” also called CEE is nothing less than an energy certificate indicating whether a house is energy efficient or not. The conscious certificate indicates whether a property is or is not efficient which is marked with letters from A which means maximum efficiency to G which means not efficient. These certificates are required for homes built before 2007.

Check Up
The audit will check the energy consumption in the home and in what ways it is reduced or can be customized. If you get a certificate then this is valid for a maximum ten year period. For the preparation of a CEE a professional should be sought.

No Certificate, no sale / lease
If you want to sell or rent a house after June 1, 2014 the owner must have a certificate. If the property is sold without this certificate the owner can be fined up to 6,000 euros. Besides the fact that these certificates must be presented when selling or letting a home, these certificates must be presented to the proper authorities in the province where the property stands.

Costs
The cost of applying for and obtaining a CEE, depends on the size of the property to sell , and normally costs are between 150 and 300 euros.
Experience Estate S.L. has good contacts with various architects who are authorized to issue a CEE.

Cédula de Habitabilidad (Certificate of Occupancy)

The license of first occupancy, in Spanish called “licencia de primera ocupación” or in some parts of Spain “cédula the habitabilidad” is an administrative license issued by the municipality where the property is located, and is a permission for the owner to legally engage the home.

When buying your home, you have probably received this declaration, with a focus on probably, because in the early years they did not look so closely

The “cédula the habitabilidad” on the date of sale may not be older than 5 years.

However, if this date has already been exceeded, or if you are not in possession of a “cédula the habitabilidad”, it should still be requested by the seller.

To request a “cédula the habitabilidad” a professional should be enabled, in this case a competent architect.

Costs
Costs depend on the municipality in which the property is situated, and the sizes of the property to sell.
Experience Estate S.L. has good contacts with various architects who are qualified to apply for a
“Cédula the habitabilidad”
Costs for this application vary normally between 200 and 400 euros

Commission for the estate agent

It is not uncommon in Spain to offer your property for sale at different brokers at the same. if you make proper arrangements with the several agencies about the selling this should not be a problem and this can significantly increase the sales opportunity.

However, practice shows that brokers do not always work with the same fees which means that your property will be on the market by different providers at different prices.
In this case it will have a negative effect on the sale of your property.

Experience Estate S.L. always works on the basis of “No Cure – No Pay”, meaning that you own us nothing if we do not sell your house within the agreed period or the house is sold by yourself or another estate agent..

In a personal meeting we would like to explain you our sales methods and our fees.