[Anonymous]

Wasn’t quite sure where to post this, but would appreciate some advice…..

We are looking to reduce the price of our house in Granada to as low as possible to try and get rid of it, and wanted to ensure we take into account all costs that we would incur.

I am assuming we would need to pay Plus Valia tax, estate agents fees, plus any fee the bank may charge for pulling out of the mortgage early. We would not incur Capital Gains Tax as we paid more for the house than we would sell it for (unfortunately). If we were to factor in, say 10% of the selling price, should that cover everything?

We are now based in the UK so are non residents.

Any information would be greatly appreciated (as the estate agents do not seem to be answering my questions!!).

Thanks.

[Anonymous]

Firstly avoid estate agents. Market it yourself on a internet website like fotocas. (or here)

If you want to sell quickly then you simply have to price it to sell, otherwise how else does it stand out from the other 5+ million properties. That is the real key to selling.

Add into the private sales contract that the buyer pays all costs. So this means. (You will have to pay your mortgage cancellation costs)

1) Land registry charges
2) Notary Fees
3) Plus Valia

You can then just set a price at which you are happy to hand the keys over and walk away, if it’s low enough then the buyer will agree in the first place to buy and pay the above fees.

In answer your question (excluding estate agents) 10% is far to high.

0.5% notary
few hundred for land registry
maybe a few hundred for Plus Valia if you have only owned a 3 or 4 years. Maybe 1000+ if owned 5 years plus.
1000 Euros for a laywer. But really not necessary. Just a translator at notary required.

[Anonymous]

Thanks for that – very helpful.

[Anonymous]

The selling costs are more or less as explained in the previous post

– Plusvalía, in the region of 500- 1000 €uros.
– Capital gain tax: 18% of the net profit. As you are non resident, the buyer has the legal obligation of wittholding the 3% of the selling price as a provision to pay the capital gain tax, if any. As you are not getting any profit, you are entitled to claim the 3% retention from the tax office (which takes several months in being refunded).
– Mortgage cancellation costs: you have 2 kind of expenses related to this: a) financial, which is the money due to the bank; b) legal: the notary and land registry fees due for the mortgage cancellation deeds, about 800 euros in total.
– Power of attorney: if you are not planning to come for completion, you should grant a power of attorney to the person appointed by you to assist you in this matter. The cost of granting the POA in the UK is in the region of 200-300 sterling. The cost of granting the POA in Spain is in the region of 70 euros.
– Legal fees: I disagree with the previous comment stating you don’t need a lawyer to sell your property. It is true you don’t need it, but it is advisable to be assisted by a lawyer for several reasons: the lawyer takes responsibility for the legal work carried out on behalf of his clients. A translator will not asume any responsibility in this regard. The lawyer will liaise with the banks to ensure they attend completion and cancel the mortgage signing the mortgage cancellation deeds. The lawyer will ensure any contract signed protects your interests, which is a protection not provided by any other professional whatsoever. The lawyer will ensure to report the sale of the house to the communities of owners, the electricity and water companies and the Town Hall. In case you can not attend completion, the lawyer will assist you in granting the POA in the UK. And finally, the lawyer will claim the 3% tax retention to the tax office on your behalf. So there are so many things the lawyer will do on your behalf to protect your interests.
– Minor expenses: certificate from the administrator of the community of owners (about 50 euros), bank commissions due for the transfer of funds, etc.
Should you have any question, please do not hesitate to contact us, we will be more than happy to assist.

Best regards

[Anonymous]

Thank you – that has explained everything very clearly. Just need to find a buyer now – the difficult part!

[Author]

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