|
The Selling Process
 Firstly, we recommend you seek the services of a lawyer if you intend to sell your Spanish property. This applies whether you are resident in Spain or
not as there are many pitfalls awaiting the seller who tries to ‘go it alone’.
There are many ways to sell your Spanish property but first you should set a realistic price tag as it is now a buyer’s market in Spain and if you
really want to sell – price it to attract buyers.
Apart from the traditional method of getting estate agents to try and sell it, try selling it privately. Use of internet that allow you to list your
property for sale are becoming more and more popular. Some will charge you, some are free, depending on their offline exposure expenses. For example
RentAccomSpain.com have a listing service at www.rentaccomspain.com/searchproperty.asp,
where you can advertise your property for sale.
As is the way in life, there are taxes you should consider when you sell your property or land. These are listed below:
Capital Gains Tax
This is a tax on the difference between what you paid for the property plus the value of any improvements you have made (purchase price) and what you
eventually sell if for (sale price). As was customary in recent years, sellers declared the sale price to be much lower than the current market value and
so saving themselves lots of money in capital gains tax (as it seemed as if there was only a small difference in the purchase and the sale price). Now
however, things are somewhat different in that if the tax inspector feels that the sale price is too low (i.e. far below the approximate market value)
then heavy penalties may be applied to the seller – so be warned. Your lawyer should find out the market value of your property from the tax office to
avert possible complications later.
The capital gains tax payable is calculated differently depending upon whether you are resident in Spain or not and is therefore taxed through either
the IRPF (personal income tax) or the IRNR (tax for non-residents) systems.
IRPF – impuesto sobre la renta de las personas fisica (tax for residents)
If you, as a seller, are resident in Spain and pay your taxes there, then you will pay capital gains tax through the IRPF system. The amount of tax you
will pay depends upon how long you have owned the property.
If you have owned it for more than one year then you will have to pay 15% of the sale price, however if you have owned it for less than one year the tax rate can be anything from 18% to 45% depending on your income tax status.
In short – the longer you own your property the less tax you will pay.
IRNR – impuesto sobre la renta de no residentes (Tax for Non-residents)
If you are not a Spanish resident and pay tax in another country, then your liability for capital gains tax is 35% although the EU are in the process
of taking Spain to the European Court of Justice in an attempt to get them to level the tax rate irrespective of residency or not. So … it may be worth
you while hanging on to your property until the verdict is announced and maybe save yourself some money.
In both cases, the buyer’s solicitor will retain a portion of the sale price as an initial deposit against the capital gains tax due. This is a
portion of the declared sale price and is usually 5% for non-residents and 3% for residents and was intended to ensure the tax is paid (particularly by
foreign nationals). Once the tax liability has been calculated, you will then either have to pay more to the Spanish tax office or receive a refund of
the unused portion of the deposit.
An important point to note: you cannot sell a house in Spain without an NIE number.
Also, if you are over 65 and have been a legal Spanish resident for the preceding three years, then you do not have to pay this tax. This is also
true if you are selling a house which you purchased before December 1986 – resident of Spain or not.
| 
