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Selling Property in Spain

Everything You Need for Selling Your Property in Spain

Sales Conveyancing in Spain

Selling a property in Spain? Our property conveyancing Spain services ensure a seamless and secure transaction, protecting your interests every step of the way. Selling a property in Spain involves various legal, financial, and administrative steps that can quickly become overwhelming. Our team of experts ensures a smooth, stress-free process, handling everything from contract drafting and tax compliance to notary coordination. Whether you’re navigating legal requirements or looking to maximize your final sale proceeds, we provide the clarity and security you need every step of the way.

Selling Property in Spain: Table of Contents

Important Note Before Selling your Property

Before deciding to sell, it’s essential to have a clear picture of your net proceeds. Requesting a cost breakdown from your solicitor allows you to understand exactly how much you will receive after taxes, fees, and other deductions. This step helps you evaluate whether selling is financially worthwhile and prevents unexpected costs from reducing your expected profit.

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Hassle-Free Property Sales: Your Step-by-Step Guide

Preparing Your Sale

1. Power of Attorney

To represent you remotely in the sale, we may require a power of attorney. If you are abroad, we provide a bilingual POA draft to be notarized and apostilled before sending it back to us.

2. Contract Draft

Once we have all necessary documentation, we draft a contract of sale and purchase. We negotiate its terms with the buyer’s solicitor to ensure fair conditions for both parties. Once an agreement is reached, the contract will be sent to you for signing.
As part of this process, we negotiate the completion terms, date, retentions, and other key aspects. The final completion date will be included in the contract draft, ensuring clarity and a well-defined process for both the buyer and the seller. Once we have all necessary documentation, we draft your private purchase contract and negotiate terms with the buyer’s solicitor.

3. Documentation Required

Before selling your property, you must first prove ownership. Property ownership in Spain is certified by a public document called an Escritura (Title Deeds), which must be authorized by a notary and registered with the Land Registry. We will need a copy of your Title Deeds, or at least the main details, to provide to the new buyers.
While it is not mandatory to give the buyer a copy of the Escritura, having it available helps prevent complications and facilitates legal searches by the buyer’s solicitor.We will need:

  • Copy of Title Deeds
  • Energy Performance Certificate (CEE)
  • NIE (Foreign Identification Number)
  • Passport copies
  • First Occupation License
  • Up-to-date Council Tax (IBI) receipt
  • Proof of payments to Community of Owners
  • Proof of paid water, electricity, and gas bills
  • Records of any advance payments by the buyer
  • Documentation of past renovations or construction (e.g., swimming pool, extensions)

    • 4. Debts & Encumbrances

    We identify outstanding debts and liaise with banks to ensure the cancellation of mortgages.

    5. Licences & Certificates

    We obtain the required licences and certificates to ensure a legally sound transaction.

    Preparing Your Sale

    6. Final Cost Breakdown

    We provide a detailed breakdown of all taxes, fees, and retentions related to your sale, ensuring full transparency.

    7. Notary Preparation & Completion

    On the completion date, we coordinate with the Notary, either signing on your behalf via power of attorney or accompanying you as advisors and interpreters.

    8. Taxes After Selling, Other Costs & Mortgage Cancellation

    After selling, vendors are liable for a number of taxes and additional costs levied by different authorities.

  • Plusvalía Tax: This is a municipal land tax calculated based on the increase in the land’s value from the time of purchase to the time of sale. The amount varies depending on the municipality and is payable to the local town hall.
  • Capital Gains Tax: When a non-resident sells property in Spain, the buyer is required to retain 3% of the sale price and pay it directly to the tax authorities as an advance on the seller’s capital gains tax liability. This does not increase the purchase price; instead, the buyer pays 97% of the agreed price to the seller and 3% to the tax office.
    • If no profit is made or the tax payable is less than the 3% retention, the seller can request a refund from Hacienda. However, refunds will not be processed until any outstanding tax liabilities (such as income tax or wealth tax) have been settled.

    We will handle the process of reclaiming this retention and ensure you are up to date with all non-resident tax obligations.
  • Mortgage Cancellation: If your property is under a mortgage and needs to be canceled upon sale, all associated cancellation costs are typically the seller’s responsibility. We ensure that this process is carried out correctly, avoiding any legal complications.
  • Other Costs: The remaining costs related to the sale and transfer of the property are usually the responsibility of the buyer. These include:
  • Fees at the Land Registry
  • Transfer Tax (ITP)
  • Value Added Tax (VAT)
  • AJD (Impuesto sobre Actos Jurídicos Documentados - Stamp Duty)
  • Notary fees for drafting the new Escritura (Title Deed) and officiating its signing.
  • Utilities Contracts: The buyer’s solicitor will handle the change of utility contracts to ensure continuous service under the buyer’s name. All outstanding bills should be settled before completion. In some cases, solicitors may agree on a utilities retention, where a portion of the sale price is temporarily withheld to cover any unpaid utility debts. If no outstanding payments exist, the retained amount is fully refunded to the seller.
  • Plusvalía Tax: A municipal tax based on land value appreciation.
  • Capital Gains Tax: 3% of the sale price is retained by the buyer and paid to Spanish tax authorities; we assist in reclaiming excess amounts.
  • Mortgage Cancellation: If applicable, we ensure all necessary costs and procedures are handled properly.

    • After Your Sale

    9. Tax Rebate

    We manage the process of reclaiming the 3% retention fee withheld by the buyer at the time of sale. Our team ensures that all necessary documentation is submitted to the Spanish tax authorities, helping you recover any excess amounts paid, provided all tax obligations are met.

    10. Bank Account & Utility Management

  • Closing of bank accounts if necessary
  • Cancellation of direct debits and utility contracts
  • Ensuring outstanding bills are settled

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    Sales Conveyancing in Spain

    Contact Us Today

    Ensure a smooth and legally sound property sale in Spain with Fuster & Associates. Contact us today for expert property conveyancing Spain services.

    • Expert Legal Guidance: Our team of specialized solicitors ensures compliance with Spanish law.
    • Transparent Process: Clear, step-by-step guidance to prevent unexpected complications.
    • Bilingual Support: Assistance for international sellers, bridging language and legal barriers.
    • Protection Against Legal Risks: Avoid common pitfalls that could jeopardize your transaction.

    📞 Call us now or 📧 email us to book a consultation.

    FAQS

    Sales Conveyancing FAQs: Everything You Need to Know

    Sales conveyancing is the legal process of transferring property ownership from a seller to a buyer. It includes contract drafting, legal checks, tax calculations, and finalizing the sale at the notary. A proper conveyancing process ensures a smooth, legally compliant, and risk-free transaction. Sales conveyancing refers to the legal process of transferring property ownership from a seller to a buyer. It includes preparing contracts, ensuring legal compliance, managing tax obligations, and handling the transaction at the notary.

    While not legally required, hiring a solicitor is highly recommended to avoid legal pitfalls, ensure compliance, and facilitate a smooth transaction.

    You will need:

    • Copy of Title Deeds (Escritura)

    • Energy Performance Certificate (CEE)

    • NIE (Foreign Identification Number)

    • Passport copies

    • First Occupation License

    • Up-to-date Council Tax (IBI) receipt

    • Proof of community fee and utility payments

    • Any documentation regarding property renovations

    Yes, the insurance must be contracted with an authorized provider in Spain and must offer full coverage without co-payments or waiting periods.

    The average conveyancing process takes 8-12 weeks, depending on factors such as legal checks, notary availability, and tax clearance. Working with an expert conveyancing solicitor can help expedite the process and avoid unnecessary delays

    • Plusvalía Tax: Municipal tax based on land value appreciation.

    • Capital Gains Tax: A 3% retention is applied for non-resident sellers, which can be reclaimed if there is no profit.

    If no capital gains tax is due, sellers can apply for a refund of the 3% retention paid to Spanish tax authorities. The process typically takes 6-12 months, and all outstanding tax liabilities (income tax, wealth tax) must be settled before the refund is approved. If no capital gains tax is due, a refund can be requested from the Spanish tax authorities. This process typically takes 6-12 months.

    Yes, the seller is responsible for ensuring all utility contracts are settled and closed. In some cases, the buyer’s solicitor may request a utilities retention to cover any unpaid bills.

    Yes, selling property remotely is possible by granting a Power of Attorney (POA) to a solicitor. This allows legal representatives to handle the entire sales process, including contract signing and tax payments, without the seller needing to travel to Spain.

    • Notary fees

    • Land Registry fees

    • Legal fees (solicitor)

    • Estate agent commission (if applicable)

    • Mortgage cancellation fees (if applicable)

    To ensure a smooth and quick sale:

    • Hire an experienced conveyancing solicitor to handle legal procedures.

    • Gather all required documents in advance to avoid last-minute issues.

    • Ensure that all taxes and utility payments are up to date.

    • Request a cost breakdown from your solicitor to know exactly how much you will receive after taxes and fees.

    • Set a competitive price based on current market trends.

    • Use a reputable estate agent to market your property effectively.

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