If you’re a real estate agent seeking to develop your business and make worthwhile investments, expanding your property portfolio and selling property in Spain is a fascinating venture that offers you endless business opportunities.
While we know that the thought of expanding your business abroad often seems appealing, grasping the intricacies of a foreign market can feel overwhelming. That’s where having the right knowledge and know-how makes a markable difference when selling property in Spain.
Spain should be your first-choice international real estate destination; the Spanish property market is ripe for investment, giving your customers the perfect opportunity to buy a property that’s lucrative for their well-being and wallets. And if you’re wondering how to sell a property in Spain from the abroad, we have the tools you need to get started.
We hope these steps help you take the leap and diversify your business, find the perfect Spanish property partner and tailor your marketing strategy to achieve the competitive advantages you’re seeking in the industry.
Selling the Spanish Lifestyle
When selling property in Spain, you’re appealing to the heart and mind. You’re not just selling a physical asset; you’re selling a lifestyle. Economics aside, you need to highlight the benefits of living in Spain to find customers who want not only profitable real estate investments, but also a higher quality of life. Here are some of the top benefits:
- Laidback lifestyle
- Affordable properties
- Warm weather
- Good connections
State of the Spanish Market
Before you begin, you must gain an extensive understanding of the state of the Spanish real estate market. While the Spanish economy was in the process of bouncing back from the 2008 financial crisis before the COVID-19 crisis and the associated malaise, the strong pound still presents fruitful opportunities that are ripe for international citizens looking to take advantage of the real estate sector. Now it’s an ideal time to seize these favourable economic circumstances and encourage customers to buy now.
Spanish Property Developments
While grasping Spain’s economic climate and appealing cultural attributes is imperative, you also need an equally firm footing on what strategies you should implement to guarantee you’re able and ready to embark on your journey of selling property in Spain. Your potential customers and Spanish property partners will trust you to have the knowledge and skillset to administer, grow and market your portfolio in a foreign country.
To implement this, you’ll need insight into Spanish property developments. This process includes:
- Executing effective strategies to find the right properties to sell
- Defining your portfolio according to the specifications of your business plan
- Ensuring you cover all the mandatory procedures that come with buying and selling property on foreign shores whilst providing your clients with the best possible services.
Selling Property in Spain & its Tax Implications
There are two tax payments you’ll want to have at the top of your mind.
Capital Gains Tax (CGT)
If you are selling the property at a higher cost than what you initially paid, this tax is essentially the tax you pay on the profit you made on the sale of the home. You can deduct the estate agent commission fee and other costs before you determine the final CGT rate. The CGT rate tends to be between 19-23% and depends on the size of the gain.
The next tax you must consider is on a local level. This local municipal tax calculates the rateable value (cadastral) and the number of years that have passed since you purchased it. The seller is usually responsible for this tax and generally rounds out to a few hundred euros. Still, the law stipulates that the buyer and seller can negotiate who will ultimately pay it within 30 days of the sale.