Selling property in Spain as a non-resident may at first seem like a daunting task, but you don’t need to worry: Grupo Esmeralda is here to talk you through the process. Whether you’re an investor looking to expand your property portfolio or a holiday homeowner wanting to buy your next place, this post will give you detailed knowledge and know-how to make sure each and every step of the purchase process goes smoothly.
Spain, and Calpe in particular, has got countless draws that will appeal to your future buyers. As you only know too well. The quality of life on the Costa Blanca is notoriously high with the golden beaches overlooking the sparkling Mediterranean set against the backdrop of rugged mountains that are calling out to be explored. The weather is warm and sunny all year round, ideal for enjoying a cup of café con leche or glass of wine on a terrace even in the winter months.
Though the pace of life might be more laid-back, the same cannot be said of the real estate market. There are great properties on the market – including yours – that are high on appeal for foreign buyers. This only means one thing: selling your property in Spain is sure to be a profitable transaction. Keep reading to discover more details about the process.
How to sell a property in Spain
From thinking about selling to handing over keys, the process of selling a property in Spain involves a good number of steps. To give you an idea of what you can expect from the experience, here’s a break-down of the tasks you’ll be putting on your to-do list:
- Get an idea of the state of the local real estate market. The first step is to know what’s going on around you so you can get a realistic idea of what your property could go for. Factors to consider are price per square foot and what your neighbours sold for.
- Decide on a price. Now you’ve done your homework, you can be confident about the price you want to get for your property.
- Prepare your property for visits from potential buyers. You might want to think about giving the walls a lick of paint, removing personal belongings and giving the place a good clean so that buyers can imagine themselves in the space.
- Gather all the necessary paperwork. The legal process for selling a property in Spain requires presenting plenty of documents, including an energy efficiency certificate, the technical inspection certificate, the mortgage certificate and more.
- Find a buyer and sign an ‘arras’ contract. The latter is a private contract (which is not obligatory) that both parties sign to demonstrate a commitment to selling or buying the property for the specified price.
- Draft contracts and complete. The next and final stage is to sign the contract, officially handing the property over to your buyer.
Costs of selling a property in Spain
Like elsewhere, buying and selling a property comes with a number of costs. So what are the costs of selling a property in Spain? There are two tax payments that you’ll want to bear in mind.
The first is Capital Gains Tax (known as IRPF in Spain). If you are selling the property at a higher cost than what you initially paid, Capital Gains 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 second is Plusvalía Tax, which is a local tax. This local municipal tax calculates the value of the land from the time you bought the property until when you are selling. The seller is usually responsible for this tax and it generally rounds out to a few hundred euros. The law stipulates, nevertheless, that the buyer and seller can negotiate who will pay it within 30 days of the sale.
Selling property in Spain as a non-resident
If you don’t have official residency status in Spain, there are some special conditions to satisfy. The buyer will have to pay 3% of the final purchase price to tax authorities that will offset any of the Capital Gains Tax you have: you must then pay the remaining balance within 30 days.
Inevitably, you will want to factor this into your tax obligations back at home as well. To do so, we’d recommend consulting tax advisors with knowledge of the Spanish system.
Grupo Esmeralda: your Calpe property partner
If all the above sounds a little complicated and, let’s be honest, tedious, you’ll be pleased to hear that Grupo Esmeralda is on hand to help. We are well-versed on the intricacies of the local property market, specifically selling foreign sellers’ properties to foreign buyers in Calpe. Pair that with knowledge of the Costa Blanca and extensive experience and you’ve got a winning combination. Get in touch today and we’ll get the ball rolling.
