PROFESSIONAL SALES SERVICE WITH EXPERT ADVICE ON HOW TO MARKET YOUR PROPERTY
If you have a property to sell in the Costa Brava we can offer you a very personal sales service. Costa Brava Connections has offered a professional sales service in the Costa Brava area for a number of years and have built up a strong database of clients both within and outside of the area. We have a number of clients at any given time seeking their ideal home in the Costa Brava. We are currently seeking properties in the Begur, Pals, Plaja D'Aro, Calonge, Aigua Blava, Tamariu and Llafrac areas.
We can advise on the very best method of marketing your property. Working in conjuction with a network of local agencies we offer a very expansive sales sevice and have been sucessful in attracting many overseas investors through our marketing strategies outside Spain. We are very pro active in the sales area and endeavour to get you the best possible price for your property.
We can also offer an advisory service which will explain to you clearly what your fiscal liabilities are in the event of a sale of your property. This service is particularly valuable to non resident vendors.
The following is a guide to what you might expect. As the tax laws change frequently please ask for up to date advice as as we try to keep this page updated it is not always possible.
What costs are involved when selling my house in Spain?
When selling your property in Spain:
Make sure you take into account the following costs when selling:
1)Municipal Plus Valia - every seller has to pay a tax based on the incremental value of the land which the property occupies over the amount of years you have owned it. (eg: small apartments may be about 50 Euros per year, whereas villas may be a few hundred euros and more per year. The tax is based on the value of the land that appears in the receipt of the IBI (rates), and every Town Hall applies their own scales. However, recently this has been centralised and the department in La Bisbal now sets the rate of Municipal Plus Valía. There have also been changes to a number of the regulations which local Town Halls could apply in order to regularise the system and in accordance with the laws in force, the above mentioned Tax must be paid by the Seller in Catalonia. However, there are some exceptions to this rule and we recommend you take legal advice on this from the Notary or your lawyer.
2) Community Fees: Make sure your Community Fees are up to date - normally you will have to present a CERTIFICADO DE COMUNIDAD to the buyer on signing the Escritura. This only applies in the case of communal properties. If your house is a detached property on its own land this does not apply.
3) IBI and Utility bills You will be require to have a copy of the receipt of payment on the day of the sale if you sell your property after the 1st January of any given year you are liable for payment of that year
Also ensure your utility bills are paid to date. You will be asked to produce copies of them in order to sign off on your bills.
4) Mortgage Cancellation Fees - Your bank will probably have anywhere from a 0.5% to 1% cancellation charge on the balance of your outstanding mortgage
5) Mortgage Notary Cancellation & Registration Fees - In addition to point 4), as a seller you will have to ensure your mortgage is cancelled at the Notary and Registry. This may cost anywhere from 600 Euros to 1000 Euros, and is an amount that will probably be retained by the Notary to ensure this is done
6) Non Resident Retention Tax at 3%: If you are non-resident in Spain, the buyer of your property will have to retain 3% of the Escritura Sales Price to pay directly to the Spanish tax man (hacienda) on your behalf. This is generally given to the Notary who will pay it on your behalf. If you have not made a profit you can reclaim the tax and this can be done either by the Notary or an accountant on your behalf.
This we know as Capital Gains Tax and is paid on the following basis:
The difference between the original purchase price and the selling price is the amount liable. From this is deducted the relevant taxes and expenses incurred by the seller of the property in Spain. Legal fees, taxes and an agents’ commission can be deducted from the actual selling price of the property. Improvements made to the property of the ownership period can also be taken into account in order to calculate the CGT. This is only true if the construction is legally and administratively documented and invoices are present showing IVA (VAT) for all work that was carried out on the property.
CGT can apply to an individual or a company whether registered as a resident in Spain or not. The rules and regulations differ depending on the type of assets that are involved.
7) Agents Commission - If you have used an Agent to sell your property, then you will also have to account for the Agents fees which can range from a 5% to 8% depending on the agent, and the agreement you have made with them. This is subject to IVA. Costa BravaConnections offer an 'all inclusive package' which includes marketing costs, drawing up contracts and all the administration leading up to the sale and support for a period of time after the sale. Our fees are 5% for the full package. Other agencies will expect to be paid a flat rate with marketing etc., as additional charges.
It is common practice to appoint an agency as your main agent. Exclusivity is usually requested for a period of time. In practice most agents have reciprocal commercial arrrangements with other agents in the area. This practice is common and gives the seller the advantage of whilst dealing with one main agent in effect there will be a number of local agents working together to sell the property. On the sale of your property, the commission will be shared between the 'main agent' who will be your point of contact and the other agent who will introduce the purchaser.
Many of the services that a solicitor will perform on the sale of a property in other countries are performed by the Estate Agent here in Spain. There are a number of documents and requirements that the sale will be reliant upon and it will generally be the duty of the Agent to procure these in order to provide the Notary's office with the details to draw up the final sales contract so that the purchase can proceed.
8) The role of the Notary in Spain is as an agent of the state and is therefore bi-partisan. The Notary is responsible for ensuring all documentation in order to purchase or sell your property including the planning permissions, land registry documentation and registration, tax affairs and relevant paperwork are in order before the sale can proceed. The property must be free of all debts, liens and mortgages. It is the job of the Notary to ensure that all payments made by the purchaser are accounted for and that all due payments of the vendor are made. The searches pertaining to the sale of your property will not be concluded until the actual day of the sale and if any document is not available the sale will be delayed.
(9 Residents of Spain are not liable to CGT under certain conditions which change regularly.
Generally if you sell and it is your primary residence and you re invest part or all of the money from your sale then there is no liability.
If you are tax resident and over 65 years old there is no CGT applied
Please consult your tax advisor on this matter. We try to keep this information up to date but this is not always possible.
10) Energy Rating Certificate You must provide an Energy rating Certificate for your property at the time of the signing of the deed of sale. This is a new requirement under EU legislation.
11) Cedula de Habitabilitat de Segundo Ocupació Is also necessary. It may not have been when you bought the property as this is a relatively new requirement.
