SELLING A PROPERTY IN SPAIN

• Estate agent fees
• Solicitor fees
• Energy performance certificate
• Non-resident tax
• Plusvalia tax

ESTATE AGENT FEES

Depending on the region of Spain where you are buying a property, the estate agent commission will vary. They usually charge a commission between 3% and 6% + IVA on the sale price.

In REUTERS SOLICITORS we recommend you to ask for their commission before hiring the estate agent services.

SOLICITOR FEES

Generally speaking, lawyers charge 1% +IVA on the sale price for completing the whole sale process with total success.

Our film, REUTERS SOLICITORS, offers better rates when the sale price is high. Do not hesitate to contact us and make a free consultation.  

ENERGY PERFORMANCE CERTIFICATE

The EPC is mandatory since 2013 and should be done by an architect before the signing of the sale at the Notary. The Certificate must be attached at the purchase deeds and be sent to the Land Registry for registration.

The cost of the EPC is between 150.-€ and 300.-€ (for villas)

NON RESIDENT TAX

If you are non-resident,the buyer of your property will be obliged to retain 3% of the sale price which will be deposited into the Tax Authorities in the following 30 days of the signing by submitting “Modelo 210”.

The seller is entitled to obtain the 3% non- resident tax back by submitting a tax form after the buyer submits Modelo 210.

PLUSVALIA TAX

Plusvalia Tax is a local tax payable to the Town Hall.

Although this tax is payable when the selling price is higher than the purchase price, almost all Town Halls charge for this tax. REUTERS SOLICITORS recommends you to ask your lawyer to calculate this tax before selling the property.

Some Spanish Courts have sentenced that it is not legal to charge this tax when the sale price is lower than the purchase price and you can prove it with the purchase and sale deeds, however, these court decisions are not mandatory until the Government rule a new law modifying Plusvalia Tax.

Until there is a new law, the Plusvalia should be paid and ask for a refund afterwards.

WHICH ARE THE COSTS OF SELLING A PROPERTY WITH A MORTGAGE?

If you are selling a property which a mortgage, you will incur in the following expenses:

BANK CHARGES

When your property is mortgaged, the seller must clear the mortgage debt at the time of selling the property.

When a mortgage was signed, client and bank agreed a cancellation mortgage commission. The commission usually is 0,5% on the pending mortgage capital.  When a client wants to clear the mortgage, the bank automatically implements the commission.

Once the mortgage debt and the commission is paid, the bank drafts a mortgage cancellation certificate which should be submitted at the Notary the day of the property sale.

A bank manager will attend the meeting at the Notary and he/she will sign the cancellation mortgage deeds which will be sent to the Land Registry for its registration.

NOTARY FEES

As previously said, the cancellation mortgage must be cancelled in front of a Notary by signing a cancellation deed.

The cost of the cancellation deed is between 200 € – 300 €.

LAND REGISTRY FEES

The cancellation mortgage deeds must be registered at the Land Registry. The cost of the Land Registry will be between 100 € – 250 €.

STAMP DUTY. “ACTOS JURIDICOS DOCUMENTADOS” TAX.

When you submit the cancellation mortgage deeds at the Land Registry, it is mandatory to add the “Actos Juridicos documentados” Tax document. The tax should be filled at 0 €, so the seller will not incur in any other expense.

GESTORIA FEES

If the buyer of your property needs a mortgage, his bank will organize the paperwork through a “gestoria” (administrative manager). The Gestoria will arrange all needed steps to cancel the previous mortgage on your name, in order to ensure that the new mortgage is registered without any other charge at the Land Registry.

Although your lawyer should deal with cancellation mortgage, banks do not allow them to do it unless it is make by their Gestorias.

The cost of the Gestoria is between 300 € – 450 €.

WHAT HAPPENS IF YOUR PROPERTY IS IN NEGATIVE EQUITY?

If your property is in negative equity, do not worry. Your property can be sold anyway.

The process is called “Quita” and it is a negotiation with the bank/lender where you ask the bank to write off the difference between the sale price and the mortgage debt.

It is a complex process so we recommend you to hire the service of an expert in mortgages. REUTERS SOLICITORS can deal with Quita process on your behalf.

You can read more about Quita through this link.