When it comes time to sell your property, there are expenses involved in the process. I’ve heard over the years, many different variations of costs, however they were exaggerated expenses or even worse, didn’t even exist!
Providing all of your paperwork is in order, there are potentially 3 costs involved when selling as a resident of Spain, however there will be 4 costs involved if you are classed as a non-resident.
1. NON-RESIDENCY RETENTION: (i.e. You do not complete a Spanish tax return as a resident). You will be obligated to leave with the Spanish Inland Revenue 3% of the agreed sales price, on the day of completion. This is held on account, to cover any Capital Gains (Profit) that may be due. If no tax is due, then the Inland Revenue will refund this 3% to you at a later date. If some tax is due, then they will refund a portion, and if you must pay tax, then you should not expect a refund. On experience, refunds have been made from anywhere between 3 months after a sale has completed, to 18 months however in some unfortunate cases, it has taken longer. It is NOT held on account to pay any unpaid utility bills.
2. TOWN HALL CHARGE; Plusvalia. This is a fee payable to the local Town Hall on every property sale, of which is an increase in the land value from the time when you originally purchased your property, to the time when you sell. It is NOT paid by the purchaser.
3. REAL ESTATE AGENTS COMMISSION. In general they can range between 3% to 10%, and even more in some areas. When choosing a professional to help sell your property, find someone that brings value to you. Don’t be afraid to ask about their recent property sales in your area. Better than that, get them to show you! The buyers do NOT pay the agents commission.
4. CERTIFICATES. There are two certificates that you need when selling a property here: Habitation Certificate & Energy Efficiency Certificate (Equivalent of an E.P.C. in the U.K.) Your trusted Real Estate Agent can assist you with this.
It’s not a pain to sell in Spain, just stay clear of the rumours you hear!
Selling? Enjoy the journey!