Finding an estate agent
Although hiring an estate agent isn’t required to sell a property in Spain, their knowledge and guidance can make the process much smoother and simpler. Estate agents wear many hats, including advertising the property to attract interested buyers and showing the property, which requires lots of time, patience and effort.
Some people may choose to save money on commission fees by forgoing an estate agent. If you pick this route, you’ll be responsible for taking care of many details, including listing the property on an online housing website and showing the property to interested parties.
The benefits of hiring an estate agent are having a person who is knowledgeable in the local housing market, what is a fair and competitive price, and can take care of all the details for selling a property in Spain.
If you hire an estate agent, one of the best ways to find one is to ask colleagues, friends or acquaintances for a recommendation. Alternatively, search the Kyero agent directory and look for English- speaking estate agents in your area. Make sure to choose an estate agent licensed, accredited and registered with a professional body.
It’s a good idea to speak to a few different estate agents to find someone who is the right fit for your goals and needs. Feeling comfortable with the estate agent is key, especially since they will guide you on an important transaction.
Top tips for preparing your property for sale
When preparing your property for sale, several vital things to ensure your place shines above the rest and catches the attention of interested buyers.
- Deep clean the space, tidy up each room and remove personal items to create a neutral-looking space.
- Photograph the property with good lighting and with different angles to show off the space. Include as many photos as possible, around 25 or more. Great images are the first impression to
- potential buyers and provide an idea of what the home looks like.
- Make a video or create a virtual tour, so buyers get a better sense of the space.
- Provide a floor plan in the listing, so people have a visual of the layout
- Invest time in writing an enticing description of the property that showcases all the positive qualities of the home
Finding a solicitor and a notary
Hiring a solicitor or legal representative isn’t required in Spain to sell a home or an apartment. However, paying for their expertise can save you time and remove the stress of navigating bureaucracy and official documents. It will also save you from headaches by attempting to do it all solo.
So what does a solicitor do if hired when selling your property? The role of a solicitor is to oversee the sale of the property, manage and navigate all legal matters, and any liabilities or tax issues that arise. Hiring an expert you can rely on for such a significant transaction is something to consider when deciding to sell your property.
For a reputable legal representative, get a recommendation from a friend, family member, or acquaintance. If that’s not possible, you’ll need to search for a property lawyer who is credentialed and has experience. You’ll need to contact your local consulate for a list of solicitors specialising in Spain. If you do an online search, make sure to do due diligence.
Once you have found a buyer for your property, the next step is making the process official. The legal process for selling a property in Spain requires going to a notary, a neutral third party, who gives the stamp of approval that all the paperwork is in order and ready to go.
Both the buyer and seller must agree on the notary. The silver lining on notary rates is that they are standardised, so there isn’t any need to shop around for a good deal.
Aside from ensuring that all paperwork is correct, notaries also check that taxes are paid and place the property on the Spanish Land Registry. If you have hired a solicitor, they will join you in signing the documents at the notary to make the transaction official.
Typically, the buyer has the responsibility of paying the notary fees.
Deposit contract
The buyer’s legal representative drafts the deposit contract after the buyer completes all diligence checks. Paying a deposit confirms commitment to the transaction. A date can be set for completion. The deposit is usually 10% of the agreed-upon sale price.
A meeting will be called where the buyer, solicitors or legal representatives and the notary will come together for the final transaction of selling the property or contract of sale, escritura de compravento, providing power of attorney to your solicitor means you don’t need to be there in person to sign. Once the transaction is official, the notary will contact the Land Registry of the purchase and provide a copy of the property deed. As the seller, money will be transferred to you and now you are no longer the property owner. And the buyer happily receives the keys to their new pad.
Now, if one party changes their mind or gets cold feet and doesn’t want to go through with the sale or purchase, there are financial consequences. If the buyer decides against the purchase, they will forfeit their deposit. And if the seller chooses not to sell, they may have to pay double the deposit amount to compensate the buyer.
Fees & taxes
If you’re wondering about selling property in Spain's tax implications, there are some things to keep in mind, so there aren’t any surprises. Like any business transaction, there are fees and taxes you need to be aware of when selling a property in Spain. After all, you don’t want to be caught off guard by the cost of selling a house in Spain.
The seller usually pays these fees and taxes:
- Commission of the estate agent, ranging from 3-6%
- An energy performance certificate is required, and the minimum payment is €150.
- Capital Gains Tax– When you’ve made a profit from the sale– by selling for more than you initially paid for the property– be prepared to pay taxes on the earnings or what you “gained.”
- Plusvalia tax - This is a local municipal tax based on the land value. This tax is determined based on what you paid for the property and how much the land is currently worth. Although the seller usually pays this, this may be a tax you can negotiate with the buyer.
Residents or non-residents must pay capital gains. Typically, you’re considered a tax resident if you spend more than six months or 183 days in Spain. Tax rates depend on whether you’re a resident or a non-resident. Residents and non-residents from a country within the EU are taxed at 19%. Non-residents from countries outside the European Union are taxed at a rate of 24%.
There is a possible exemption to paying capital gains tax, but you must meet three requirements. You must be a Spanish resident, lived in the property for a minimum of three years and plan to purchase another property that will be your primary residence. This will qualify you for the main home exemption.
Summary of everything you need to know to sell your property in Spain
Selling a property in Spain can be a straightforward process, especially when you have the guidance and help of a knowledgeable legal representative and an estate agent.
You can choose to sell your home on your own without the help of experts if you want to reduce costs but be prepared to put in plenty of time and effort to sell your home.
Now you are informed of the steps, requirements, fees, and taxes involved in choosing to sell your home, in Spain, you can start to look for your new home on Kyero
