Selling Property in Spain Explained

In view of the devastating position many people put themselves in previously, either by overlooking the legalities or worse being lied to in reference to the buying and selling of property in Spain, you need to ensure your paperwork is completed to proceed without issue. Tragically many people lost their homes, so make sure the complexities involved in Spain when selling property is aided with Lawyers.

Putting together a checklist will keep you on track and ensure you have covered the important information that will be required of you legally when a sale goes through.

Everything will have to be up to date and paid, certificates should be made available. You will need to know the amount you have to pay in fees. It doesn't look like an easy job to sell your house and it certainly is an expensive task.

You would be advised to have independent legal representation to keep you on the right track. It's not an easy job alone, and you should know that it will be conducted in Spanish.

Keep in mind that your buyer will expect a safe purchase; just as you would expect a safe sale. You must also remember that there are a number of available properties for sale in Marbella and the Costa del Sol; so making sure you have your house in order to proceed can ensure a smooth ride for both parties involved. With all legalities out of the way, and the right paperwork in order, things should go off without a hitch.
The hard work of securing a buyer has been done and as much as the Paperwork is full of Bureaucracy it is essential for a quick, efficient sale.

The Real Estate Agency you used to buy your property is as valuable to you now as when you originally purchased your home. Why? A good agent will archive all the important documents needed for the sale of your property to go through.

What You Need To Present and Pay When Selling your Property in Spain

Escritura: The Title Deeds of the property.

Plus Valia: This is the land tax you have to pay and is based on the number of years you have owned the property and land. In previous years the Buyer may have picked up this bill, or split it with the vendor, this is unlikely now.

 Certificado de No Infracción Urbanística: Certification on No Infraction, to show no outstanding fines, penalties or debts on the Property presented by the Town Hall. This is now an essential piece of paperwork. You can get the certificate from the Town Hall. Really, who would want to buy a house with debts attached to it and inherit them?

NIE numbers/Residencía: Original documentation you cannot sign at the Notary without it. Your original passport must accompany this as well. After the sale of the property if you are leaving Spain remember to inform the correct Tax Authorities so as not to accrue additional fees.

Licencia de Primera o Segunda Ocupación. This applies to completion of new buildings and that it is ready for habitation.
Certificado Final de Obra: Construction Completion Certificate
DON - Declaración de Obra Nueva: Declaration of the New Building has been inscribed in the land registry.

Community Fees: Certificad de Communidad (usually €15-€25).

IBI or SUMA (Catastro): This is equivalent to your council tax. Your council  tax is billed in accordance with the size of your property make sure any amendments or modifications have been updated.

Utilities: Recent bills will be presented at the Notary.

Mortgage Cancellation: The cancellation of outstanding mortgage is between 0.5 – 1% of what you still owe.

Mortgage Cancellation Registration Fees: this happens at the Notary, serves to show proof of the cancellation of outstanding mortgage (expect between €600-€1000).

Non Resident Retention: is 3%, this amount is covered by the new Buyer and is included in the Escritura Sales price. Fiscal residents may very well have to pay tax on the sale in their annual tax returns.

Agents commissions fees: these vary, expect anything from 3%-10%. You will be advised by your agent before you continue with their services.

Legal Fees: this will include dealing with the paperwork needed to present to the Notary. The 3% retention of a Non-Resident will be used in the calculation in the Capital Gains Tax on the sale of the property. Capital Gains tax is due for a revision and changes in January 2015, be informed.
The previous allowance of pre 1996 home owners at 11.1% will stop.

http://decottalaw.com/capital-gains-tax-increase/

 

Let's face it some people may not make any profit from the sale of their property; you may even walk away having made a loss. The costs involved in selling a home are high and come 2015, if you were counting on the inflationary valuation on your property this will be abandoned in January 2015 as well; and you will only be able to use the actual acquisition price.
If you are Non-resident and stand to lose money from the sale of your property, you can make an application to reclaim this money in the annual taxes. It has to be supported with evidence stating this.
Energy Saving Certificate: Royal Decreto 235/2013 This is not unique to Spain it is a European initiative to help you understand your property and its emissions. This gives a fair report on how the energy savings can be enhanced in a property and it would be up to you if you choose to make changes prior to a sale.

http://bit.ly/1oQMo3U

Selling your Home at Auction is an Option in Spain

You can choose to sell your home at auction as well and it may not be an unattractive option for you. The low commission and fast turnaround may be the right choice for you.
If you have been unfortunate to date on selling for a number of factors, least to say you may be in Group 3 of the poor quality build. The location may not be desirable and there are no amenities then this could be your answer.
With a realistic view on how much you want to sell for and only 2% IVA to pay in commission the sale can complete in 30-40 days.
To enter your property at auction the cost is €175 inclusive of IVA.



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