Selling your Spanish property
Times have changed and nowadays it´s almost impossible to sell your Spanish property if not “all legal requirements are met” according to the buyer’s lawyer. Besides of this, local, regional, national and international law changes constantly and the Spanish bureaucratic structure is complex. Correcting any administrative or legal issues therefore might take some time and it´s advisable to be one step ahead at the purchasers. A lawyer can take care of the total legal investigation for you, as he is a real specialist in property law (conveyancing).
Besides of conducting the legal investigation, the lawyer also negotiates his client´s behalf with the buyer about important stipulations and contingencies of the sale. Through a ´Power of Attorney´ he can legally represent you and defend your interests during the whole sales process. Based on his experience he will do so a professional way, also if you´re not in Spain yourself during the process. Together with the (lawyer of) the buyer he will deal with the private purchase contract and the signing of the public title deeds. Besides of this, the solicitor can handle all kinds of financial, fiscal or banking issues like a mortgage cancellation, which needs to be done on the same day of signing the Title Deeds of the sale.
Lawyer´s responsibilities during the property sale
- Legal investigation: The legal investigation of the lawyer when selling an urban or rustic property in Spain includes checking of:
- Land Registry (Registro de la Propiedad)
- Cadastre (Catastro)
- Town hall archives
- Building Licence
- First Occupation License
- Urban planning laws
- Juridical correspondence
- Energy Certificate
- Outstanding debts: Checking possible debts like mortgages, seizures, non-paid taxes, etc., as these would automatically be transferred on to the new owner through the sale.
- Negotiations with the buyers
- Checking / signing official documents (reservation contract, private purchase contract, Title Deeds)
- Cancelling mortgages (if necessary)
- Handling tax issues
- Plusvalía Tax
The Plusvalía is a local tax calculated over the increased value of the land that has to be paid when selling a Spanish property.
- Capital GainTax (Impuestos Ganancias Patromoniales)
The Impuestos Ganancias Patromoniales is the national Capital Gain Tax of 21% which is calculated over the increased value (the profit) of the total property according to the purchase price in the Title Deeds of the notary (minus certain initial costs).
- Seller non-fiscal resident in Spain
In case you aren´t a fiscal resident in Spain (or can´t officially prove this to the notary), the buyer has the legal obligation to deduct 3% of the purchase price as a down payment to the Spanish tax authorities. Besides of this the yearly Income Tax Declaration for Non Tax Resident (IRNR) needs to be paid.
- Seller fiscal resident in Spain
If you are tax resident in Spain you have to declare the profit you made with the sale in the next year´s Tax Income Return and we will be happy to look over any possible deductions regarding your personal situation.
C&D Solicitors Malaga
Over the last ten years our law firm has build up a lot of experience in selling properties for our clients in the Axarquia area, where we have our office in Torrox-Costa. This area consists the eastern part of the Malaga province with towns like Nerja, Frigiliana, Competa, Viñuela, Velez-Malaga, Arenas, Alcaucin, etc. However, we also offer our services for selling your Spanish property on the rest of the Costa del Sol and Andalucia. Please don´t hesitate to let us know if you have any questions or if you are interested in a first (free) meeting in our office.