Do you have a buyer for your Spanish home?
It’s a mistake thinking that you don’t need to involve a solicitor when selling your house. It is strongly advised to appoint a solicitor to avoid problems and to make sure that all your tax obligations are correctly fulfilled. Below there is a brief explanation of the most important matters that ABC Solicitors can help you with:
Before the sale is completed, we will prepare a sale contract to be signed by both parties with all the important terms, such as the first deposit payment and completion date. So that we can assist you with the sale, we will need a copy of the Title Deeds of the house and all the contact details of the other party.
We also will need the latest bills for water, electricity, local rates (IBI/SUMA), owner’s community payments, Energy and Habitation Certificates, etc. Also, you will need to make an inventory of all the furniture and items included in the sale price.
If you have a mortgage on the property, we will need your bank’s contact details.
All the owners are obliged to sign the Sale Deed of the property.
Sellers are responsible for the payment of Plusvalía Tax to the Town Hall where the property is located. This tax relates to the increment of value of the land where your property is built. To calculate it, we will need a copy of your last IBI/SUMA Tax bill. This tax needs to be paid within the 30 days following the sale.
If the seller is a non-resident in Spain, the buyer is legally obliged to retain 3% of the sale price and pay it to the Spanish Tax Authorities on completion, as a payment on account of the seller’s Capital Gain Tax. This is retained by the Treasury until your Capital Gains Tax liability has been settled.
If after calculating your Capital Gains Tax it turns out that the 3% retention was too much, you are entitled to have a refund for any money you overpaid. We will be able to claim it on your behalf. Bear in mind that if you did make a large profit with the sale, you could also end up owing further tax.
If you cannot be in Spain to complete the sale, you can give us Power of attorney before you leave Spain, or from your country (we would send you all the paperwork and detailed instructions). We can complete the sale on your behalf and send you the sale’s proceeds. We will also make sure that all utilities contracts are changed to the new owner’s, and that your tax liabilities are liquidated.
If you are selling your house, you have a buyer and you would like some guidance, please contact ABC Solicitors and we will give you personalised advise.
Also if you have sold your house some time ago and you are not sure if you are entitled or not to have a refund from the Tax Authorities, please contact us and we will check for you.
(02/06/16: We have updated this post to include all recent changes in legislation and taxation.)