Are you looking to sell your property in Spain fast? This is probably the right time to sell your property in Spain, not the least because there is a huge interest from cash rich foreign investors in Spanish properties.
Traditionally Britons have been the biggest buyers of properties in Spain. While Brexit may have dampened sentiments from British expats in Spain a little, cash rich buyers from China, Scandinavia, Ireland, Germany and Russia have picked up from where the Brits left off.
Indeed, there is every chance that you will get a good price for your property in Spain – just make sure to hire an overseas property specialist or an expert UK estate agent to market your property to cash rich buyers from abroad.
UK estate agents specialising in the overseas property business have extensive contacts among wealthy investors from China, Scandinavia, Ireland, Germany and Russia. They have a massive agent network spread across Europe and Asia, which you can benefit from.
Find out more in this guide to selling property in Spain.
Once you’ve found a buyer, the next step is to visit a notary. The notary costs are shared between the buyer and seller in Spain in some regions, while in other regions, the entire cost of hiring the notary is borne by the buyer. As a seller, you may have to pay 75% of the notary costs.
Let’s take a quick look at the taxes related to the selling of property in Spain.
The Plusvalia Tax is a tax to be paid on any increase in value of the urban land. This tax applies to the urban property only and applies to the value of the plot and not to the value of the built up area. This is a local tax which is paid to the city council where you are selling the property.
There are other taxes that need to be paid on the cadastral value of the property. This tax depends on the Land value and Construction value and the duration for which the property was owned by the seller. The local municipality levies the tax based on these factors.
Also important is the Capital Gains Tax that every seller has to pay on profits made on the sale of the property. This tax is determined by the difference between the value of the sales price and the acquisition price.
The Capital Gains Tax rates are decided by the Spanish General State Budget Act and they can change from time to time depending on the state of the economy and other considerations. It is usually around 19% to 20%.
Taxpayers from the EU, Iceland, and Norway enjoy an exemption for reinvestment in their primary residence in Spain.
There are other costs related to selling of the property such as banking costs and the cancellation fee. The cancellation fee is decided at the time of signing the mortgage deeds and is between 0% and 0.5% on the pending mortgage capital.
The stamp duty or the Impuesto sobre Actos Jurídicos Documentados (IAJD) and the Land Registry fees are the other important costs to be considered. You should consider hiring a local lawyer to help you with the paperwork related to selling of the property. Contact us to know more about the process related to selling your property in Spain quickly.