As the seller of a property in Spain, you will be responsible for certain costs. Gran Alacant Properties has
created this quick list to help you better understand what to expect. Ready to list your property? Call us at +34 966 699 441 or email us at firstname.lastname@example.org today!
The seller is responsible for paying the PlusValia. The PlusValia is a tax assessed by town hall on the increased value of the land and it will vary depending on where your property is located. It is based on the cadastral value and the number of years you have owned it and is calculated to the day you complete the sale. It is possible to get the estimated PlusValia before going to the notary so you have some idea.
Please note, there have been some challenges to the PlusValia of late. The argument is that it is unreasonable for a town hall to expect to collect taxes on the supposed increased value of the land when the real prices, the market prices, of property has actually fallen. Ask your solicitor for more information.
If there is a mortgage on your property you will need to cancel it. Please note the bank may charge you to process the cancellation. Because the cancellation has to be done at a notary and registered with the land registry you will be responsible for those costs as well.
Generally speaking, the seller pays the estate agency fees. This fee is usually paid out from the proceeds of the sale. Please note that there are some agents that will charge the buyer a fee as well. In addition, some estate agencies will charge more if they sell your property with a collaborating agency. It is important to clarify who pays and how much before signing any sales and marketing agreement.
For listings in our territory of Gran Alacant, Santa Pola and Los Arenales del Sol, Gran Alacant Properties charges 3% plus IVA for exclusive listings. Please note that for properties under 100,000 euros, we charge a flat fee of 3,000 euros plus IVA%.
If you choose to list your property with multiple agencies, Gran Alacant Properties’ fee climbs to 4% plus IVA and the flat fee for properties under 100,000 euros climbs to 4,000 euros plus IVA.
Outside of our territory of Gran Alacant, Santa Pola and Los Arenales del Sol, the fee is 5% plus IVA.
If Gran Alacant Properties sells your house with a collaborating agency, it does not cost you anything extra. We simply split our commission with the other agency.
3% Non-Resident Retention
If you are a non-resident owner, 3% of the sale price will be retained by Hacienda (the Spanish tax authority.) If you have been paying your annual non-resident taxes and there is no other tax owed, this money will be refunded to you.
In basic terms, whether or not you have to pay capital gains is based on the difference between what you paid for a property and what you are selling it for. However, there are other factors to take into consideration:
- whether you are resident or non-resident,
- whether you are planning to use the proceeds to purchase another property in Spain,
- whether you under 65 or over 65
Any of these may change your situation so the best way to proceed is to consult a solicitor experienced in these matters. If you are non-resident and owe, the 3% retention may be applied to the capital gains tax.
Gran Alacant Properties strongly advises our clients to hire a reputable local lawyer (abogado in Spanish) experienced in these matters. Your abogado will help you organize all the necessary documents, ensure that all mortgages, etc. are cancelled, handle the 3% retention for you, etc. These can be complex legal and financial matters so if your Spanish is not up to the task, we strongly recommend you hire an abogado who speaks your native language.
Another option is a gestoria. The gestor is a unique figure in Spanish life, a kind of financial and legal consultant who specializes in administrative matters dealing with the government. They are red tape specialists. Gestores do everything from organizing NIEs to preparing taxes to conveyancing.
Gran Alacant Properties can provide you with a list of several experienced local abogados and gestores. Our advice: interview several in person or over the phone and then choose someone you have good chemistry with. Fees are typically 1% of the sale price. Be sure to clarify before committing.
Be very wary of any buyer or estate agent who advises you to skip hiring an abogado or gestor to save time or money! A good legal advisor is your best protection.
You are responsible for being up to date on electric and water bills. You will need to provide a current bill to the buyer or their representative.
IBI and Basuras
The owner of the property on January 1st is usually responsible for paying that year’s IBI or council tax on the property as well as the basuras or rubbish collection. At the notary, you will need to present your latest bill and receipt for payment.
If your property is located in a community of owners, you are responsible for any community charges. At the notary, you must provide a certificate from the community administrator as proof you are up to date. Please note the community may charge you a fee for the certificate.
Sending Your Money Home
If you are not staying in Spain or buying another property here, you will probably want to send your money home. Be aware your Spanish bank may charge you when the proceeds of the sale are deposited. They may also charge fees to change and to move the money abroad. Ask us how our currency exchange partners can help and save you hundreds in the process.
Other Debts and Charges
Properties in Spain are sold free of debts and charges. If there are any other items registered against your property you will need to clear them in order to complete the sale. This can happen at the notary. Speak to your solicitor for more information.
Disclaimer: The information above is provided by Gran Alacant Properties for general informational purposes only. It is not intended to be a substitute for obtaining legal advice from a licensed abogado or solicitor. Always consult an independent solicitor.