We are considering selling our property in Spain and I wonder if anyone could advise us of the costs involved (apart from agent fees!) in selling and also the timescale once a buyer has been found. We are non-resident in Spain.
Thank you.
The main costs involved are capital gains tax and plus valia – which is the increase in value of the property between time bought and time sold. This depends on a number of factors – the timescales involved, the town hall itself, the increase in value and if the classification has changed (ie you bought it as a ruin – number 9 on the cadastral – and is now a luxury dwelling – number 1)
This is difficult to calculate unless you know the town hall and even then it is not that easy.
As for capital gains tax. As a non resident you are liable currently to pay 35% of the profit made on the property – this is due to change next year I believe to 17% for non residents but I am sure someone will correct me if I am wrong. However the buyer has a legal duty to retain 5% of the purchase price against these capital gains taxes. In order to claim it back you have to submit a Declaracion de rentabilidad, which includes the price bought at, price sold and any money spent on it (with VAT receipts)
If the hacienda decide the difference is less than the 5% retained then you will get this back – if not then you will have to pay the difference. A lot of foreigners just leave it at the 5% retention
As for how long it will take to sell. This depends on a lot of factors – where is the property located, if it is in a popular area and well priced it should sell within 3 months, if not then it could be a lot longer. You may be lucky and find someone wanting it the first day – my sister put hers on the market last week and an agent came round on Thursday, brought a buyer round Friday and she paid the deposit Saturday.
Whereas there are many properties locally where the owners want way too much and they are wondering why the house is not even attracting visitors.
I recently wrote an article regarding this subject – although it is about the Valencia region and Oliva area specifically the ideas are the same (also suggests ways of improving your chances of selling and a rough formula for valuing a house – but this is based on local figures)
Hope this helps
regards
Vince
Author
Posts
Viewing 1 reply thread
The forum ‘Spanish Real Estate Chatter’ is closed to new topics and replies.
This website uses cookies to improve your experience. If you continue to use the website you agree to our use of cookies. You can find out more here. Accept
Cookies
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.