CONVEYANCING: NON RESIDENT SELLING A PROPERTY IN SPAIN

At this moment, many people are thinking in Selling their property in Spain and coming back to their country or to face the purchase of another holiday home. Today we are knowing more about the process and costs involved in the selling of a house.

Thinking on the mainly taxes and costs, the fiscal law for Non Residents sellers obliges the buyers to keep the 3% retention of the selling price to pay it to the tax office in behalf of the sellers as an advanced payment of the Capital gains tax.

But in many cases (even more now with the current real estate market prices) there is not a capital gain when we are comparing the acquisition value and the selling value, or the capital gain tax is lower than the 3% retained. Then in these cases, the seller has right to apply for the refund of the amount retained on the conveyancing.
 

In the same way, if there is existing a capital gain, then the 3% would be an advanced payment of the capital gain tax and after the completion day, the seller would be paying the difference in case is not enough with the 3% retained to cover the total tax to pay.
 

If you are selling your house through a real estate agent, you should consider also their fees for putting the house in the market and finding a buyer
 

Another tax to pay is the local tax known as PLUSVALIA tax in Suma office. When a person is selling a property, this tax has to be paid to the town hall as is calculated over the increased value on the part of the land that your home is "occupying".
 

If you are selling your house through a real estate agent, you should consider also their fees for putting the house in the market and finding a buyer.

The seller is obliged to provide the other part with some legal paperwork as the occupation license or the recent energy efficiency certificate as European law rules.
 

You have the option in case you are not going to be in Spain on the completion date to get produced a Power of Attorney for giving a person the authorization to sell the property in your behalf.

In VP ADVISERS we can manage your conveyancing for a very low fee.
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