Selling a property in Spain usually includes a number of costs and obligations that the seller must face and the main rule is to ensure that the estate is purchased free of mortgage and other drawbacks. It is recommended to seek the counsel of a lawyer who can take care of the documents, payments needed or other procedures that must be completed. Our law firm in Spain can easily help you in all these matters.
Required Documents for Selling a Spanish Property
When selling a property in Spain, the seller will need to provide the following:
- the residency certificate or the NIE;
- original title certificate of the estate you are selling;
- last invoices for water, electricity etc;
- the keys;
- the energy performance deed;
- community receipts payments;
- tax receipts.
The video below offers more details on the sale of a Spanish property:
Some of the documents need to be notarized and, depending on the region of Spain, the costs can be distributed between the two parties and following the Spanish law, the proportion should be: 25% paid by the buyer and 75% by the seller. If you want further details or you wish counselling in selling or buying a property, you can ask our attorneys in Spain.
Sale of a Property by Residents in Spain
The gain from selling an estate by a Spanish resident is taxed on the actual sale which must be declared in the annual tax return. You can be granted the rollover relief which is available when the sale's proceeds are being reinvested (within two years after the sale), in the new residence of the taxpayer. He/she must live for three years on the property and had to sell it for a number of reasons (change of job, divorce, marriage etc). The absolute relief is granted when the seller is over 65 of age and has lived there for minimum three years.
Rules for Non-Residents in Spain
For complying with the EU rules of non-discrimination, in 2007, capital gains tax rates have been equalised for both residents and non-residents. When property is sold by a non-resident in this country, the buyer has to withhold 3% of the purchase price and then pay it to the authorities in charge of the Spanish tax as an advance of capital gains tax on behalf of the seller. For a foreigner, the tax may also be due in the country of origin.
As selling a property in Spain can be a complicated process at times, it is advisable to ask for specialized help. Our lawyers in Spain can help you in real-estate issues and taxes on selling properties, thus, feel free to ask for our assistance or advice.
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