Sales Advice - Spanish Homeowners

Legal Issues

Selling a property in Spain involves a number of complex legal obligations which are possibly different to the ones in your home country and we would advise, every time, that you engage the services of a good bi-lingual lawyer (that is, they can speak both Spanish and your Mother tongue) to ensure the sale goes as smoothly as possible.

It is possible, if your budget is tight, for you to complete a simple and straightforward sale on your own, but a lawyer representing you can suddenly become your best friend if a complicated situation arises with a difficult buyer or if you have a very expensive property.

Foreigners are not restricted to selling their property in Euros. They can sell their Spanish property, fix a price and even get paid in their home currency if they so choose but the fiscal obligations related to the sale remain in Spain and should not be ignored.

Requirements of property sellers in Spain

Your fiscal obligations amount to:

• making sure all the relevant taxes, such as the transfer tax and the Plus Valia tax are paid

• ensuring the local rates and utility bills are paid up-to-date on the day of the property transfer

• paying any capital gains tax due on the sale

Your legal obligation

Your main legal requirement is simply to ensure that the new owner has a clear title to the property and that the bank, town hall and the utility companies are all informed of the sale and transfer. You should also advise the buyer to do the same confirming the transfer into their name.

Market values

It has been common practice in Spain in recent years to undervalue the property, mainly as a way of avoiding taxes when the owner comes to sell, however Spanish law states that the real market value of the property should be declared and has sanctions in place if an under-valuation of more than 20% is discovered.

"How do know the market value to ensure I stay within the law?", you may ask! The best and most accurate method is to have a professional valuation of your property carried out. This can then be the basis of your sale price and create a starting point for negotiations with potential buyers.

Notaries

Under new rules recently introduced, notaries are now obligated to check the registration documents of the property before they sign the deeds and then, once the deeds are signed, fax them to the property register. A certificate stating that the property is free from community debt should be obtained from the secretary and presented at the notary office along with the other paperwork.