Selling your property in Spain

Selling your property in Spain

The Costa Blanca property sales guide for Spanish homeowners

IT´S A CHALLENGING time for homeowners wishing to sell their property in Spain right now, but that doesn´t mean that achieving a successful sale in Spain is impossible.

Our resident property expert, Shelley Starkey, takes a look at the current state of the property market from a sellers perspective and outlines the costs homeowners on the Costa Blanca should expect to budget for during the 2022 financial year.

What´s happening with the Spanish property market at the moment is understandably at the forefront of everyone´s mind when looking to sell a property, but over the last couple of years, both demand and prices have remained relatively stable, actually showing marked (if modest) increases over the course of 2021.

The main issue is not that people are not wanting to purchase, they certainly are, the main issue is, of course, the ongoing travel restrictions and the uncertainty they cause for the future. All estate agents here in Spain have had to adapt to this issue and most agents, like ourselves, have been relying on virtual visits.

We have been lucky in the fact that we have generated sufficient interest from online marketing and sales from real-time virtual viewings to be able to ride out the waves that the pandemic has brought.

We have seen a large increase in online enquiries and with the best part of the year ahead of us (and an entire summer coming our way), there is some light at the end of the tunnel and positive signs for the local Costa Blanca property market.

With regards to selling fees, as a very estimated and general rule, sellers should budget for around 10% of the sales price as an expected outlay. Some property owners might be able to claim back part of the costs, such as non-residents tax, if certain criteria are met.

Selling your property in Spain, the best way to sell on the Costa Blanca

What are the costs involved when selling a property on the Costa Blanca?

Nonetheless, these are the main costs that need to be considered when selling a property in Spain:

The estimated budget for the Plusvalía can vary a lot, depending on the cadastral floor value, the location in which the property is based, and the number of years the property has been owned, since it is a progressive tax. A precise calculation is essential to obtain an accurate total sales cost estimate, and we can offer this service to our clients.

Community fees need to be shown to be paid and up-to-date. Normally, the seller will have to present a Certificado de Comunidad to the buyer upon signing the Escritura.

Likewise, utility bills need to be up-to-date and current to the date of sale. Homeowners will have to provide the original proof of payment at the signing during completion. Sellers have to pay the IBI (Spain´s equivalent of Council Tax), for the whole fiscal year in which they are selling.

Mortgage cancellation fees and registration fees - if applicable.

The 3% retention is a tax that is payable when a non-resident person sells a property in Spain. The buyer of the property is required to retain 3% of the purchase price and deliver it to the tax office. The non-resident seller is able to make a claim to have the 3% returned to them.

The rate of Capital Gains Tax in Spain is 19% for EU residents, and 24% for non-EU residents. Please note that with effect from the 1st January 2021, tax liability for British residents has changed from 19% to 24%, in line with current rates in force for all other non-EU residents.

Selling your property in Spain, the best way to sell on the Costa Blanca

What taxes do you need to pay when selling a property in Spain?

These fees cover the costs of the preparation of household utility contracts, community charge and SUMA invoices, liaising with the purchaser´s representatives and the notary, preparing the notary appointment and all related paperwork for completion, accompany the seller to the notary and provide translation, calculate the 3% retention, calculate and advise regarding Capital Gains Tax liability, and give sellers fiscal representation throughout the sales process.

This document proves that the property meets the Town Hall habitability requirements - the buyer can´t assume responsibility for the household utility contracts without it.

Since June 2013 it is a compulsory legal requirement to have an EPC in place before advertising a property for sale or rent.

This averages around 5% plus IVA as standard.

Our Administration Department can provide a more accurate personalised breakdown of the costs involved, and we can also advise on current pricing for the marketing of your home. Ideally, once viewed, we can take into account the exact position of the home, orientation, condition, etc; and advise on any points that may help assist with a quick sale.

We have created a free digital guide for sellers with more in-depth information regarding selling your property in Spain. Packed with detailed financial examples, and all the best advice you´ll need to sell your home in the fastest and most profitable way. Get in touch with us today and ask for your free copy of the Costa Blanca Sales Guide for your laptop, smartphone, or mobile device. Alternatively, contact us to arrange a free valuation and appraisal of your property in Spain.

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