Selling your property in Spain.

If you sell your property then a Nota simple of the property will be required to ensure that there are no outstanding debts against the property. You must also produce the original title deed (Escritura).

Normally a holding deposit will be paid to the agent, if involved, or to yourself if selling privately. This deposit is negotiable.

A date is then arranged for the signature of the contract for the compra venta (sale). A deposit of 10% is normally payable on signature. The contract will also contain a date for signature and completion before the Notary. Usually a maximum date is inserted and completion must take place on or before that date. Failure for either party to complete will result in (a) the loss of the deposit by the purchaser. And (b) in the event that the vendor does not complete, then the purchaser is entitled to receive back double the deposit paid.

Once all of the preliminary work is done, then upon completion all bills must be produced showing that they have been paid to that date. There may be some amounts due after payment and it is then usual for the purchaser to withhold a small amount to cover this. Any monies left after payment will be refunded. The Solicitor will normally hold this.

The documents are all signed before the Notary and your solicitor will ensure that all of the payments are made correctly for the purchase. Normally this is done by bank draft. If there is a mortgage involved then your solicitor will make the calculations and ensure that the appropriate drafts are made correctly.

The keys will be handed over at completion.

You should remember to cancel all standing orders at your bank for the services, once completion has taken place.

If you are a non resident you will have a retention of 3% made by the Notary against tax. A total of 18% will be payable for capital gains tax. This must be paid within 3 months, less the 3% already retained. The tax is paid on the profit made ie: the difference between the original price in the title deed when you purchased and the price in the escritura when you sell. Expenses of the sale such as solicitors’ costs are deductible from the profit.

There is no rollover of tax if you are a non resident, in the event that you purchase another property in Spain with the proceeds.

If you are a resident and been in your property as an habitual residence for at least 3 years, then a rollover is applicable and you will have no capital gains to pay, if reinvesting in another property that will be your habitual residence. This does not apply to second or holiday homes.

Having said this the Government are to possibly revoke the rollover for residents in the near future.

A solicitors charge can vary from 0.75% to 1% of the sale price.