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Spanish Property Sellers Guide
If you are selling a property, the basic procedure is, of course, the same as for buying. A priority for you is to make sure that you choose an estate agent with whom you feel confident, and to ensure that the commission structure is clearly understood.
Once a sale has been agreed, you need to give the following documents to us to enable quick progress to be made:
  • Original Escritura Pública (Title Deeds)

  • Copies of your last IBI/BASURA receipts

  • Copies of your last utility bills (water, gas, electricity)

  • Copy of your community statutes, with the name and address of the community administrator

  • Copy of your last receipted community bill

  • An inventory of any furniture included in the sale

  • If you are a resident of Spain, and therefore not subject to the 3% retention (see below), a copy of your most recent income tax declaration

3% Retention

If you are a non-resident of Spain, the buyer must retain and pay 3% of the declared sale price to the tax authorities at the time of completion, on account of any taxes you may owe, in particular any Capital Gains Tax liability you may have (see below).

If, in fact, your Capital Gains Tax liability amounts to less than the 3% retention you can apply to the tax office for a refund of the excess within four months of completion. The refund should be made to your Spanish bank account within six months of the refund application although it can take longer where for example the sales price is less than the rateable value of the property. Please note, however, that the tax office is unlikely to refund the monies if you are not fully up to date with your annual wealth and income tax payments.

If, on the other hand, your Capital Gains Tax liability amounts to more than the 3% retention, you need to complete tax form 212 and submit this to the tax authorities with the extra payment within four months of the sale.
Greenfields can assist you in making your application for a refund or making payment of the additional tax due for which our fees are €300,00 plus VAT, which is currently 16% but rising to 18% from 1st July 2010.
Plus Valía
Please see the section entitled “Costs, Fees and Taxes”. This tax is usually paid by the seller, but is normally only a few hundred Euros.
Capital Gains Tax on Spanish Property
You are liable to pay Capital Gains Tax on your net profit. Your net profit is calculated by taking the figure you are selling for and deducting (i) the costs of selling, (ii) the initial price for which you purchased the property, (iii) all costs & fees incurred in the purchase and sale of the property and (iv) the statutory inflationary allowance.
Non-residents of Spain who are members of the European Union are taxed at a flat rate of 19%.
As a resident of Spain you are exempt from paying Capital Gains Tax on your net profit if you are able to satisfy the following conditions:
  • The property being sold is your main or only place of residence and you have owned and used the property as your main or only residence for a period of three years preceding the sale.

  • The full sale price of the property is invested in another property, again being your main or only place of residence, either two years before or after of the sale.

  • The new property must be kept as your main or only place of residence for a period of three years following the sale.

Residents of Spain, who are 65 years or older, and own a property as their main or only place of residence for three years, are also exempt from paying Capital Gains Tax on the sale of the property.