Costs Involved in Selling a Property
If you are planning to sell your house it is advisable to get legal advice from a qualified and experienced solicitor in order to protect your interests when preparing the transaction.
We have a lot of experience in selling property throughout Andalusia in places such as the following:
- Inland Andalusia (Alhama de Granada, Loja, Algarinejo, Valle de Lecrín and the Alpujarra).
- Rural and inland Jaen.
- Costa Tropical de Granada (Almuñecar, Motril, La Herradura and Nerja).
- Axarquia de Malaga (Torrox, Competa and Frigiliana).
- Costa del Sol (Marbella, Estepona and Sotogrande).
Costs Involved in Selling a Property
When selling your property you need to take into account what costs you will need to budget for. These include:
- Notary fees: the scale is fixed by law and ranges from €300 to €1,000.
- Capital gains tax: according to all the international treaties regarding double taxation signed by Spain and other countries, capital gains on the sale of properties are taxable incomes where the asset is located. Therefore, by selling your property in Spain you are subject to personal income tax in Spain.
- Plusvalía tax: a local tax based on the increase of the value of the land the property is located on from the date the owner acquired the property to the time of the present sale.
- Conveyance fee: we will prepare a personalised no-obligation quote for your particular situation.
The Essential Check-list
- Purchase title deed and receipts of associated costs when buying.
- Mortgage title deed, if applicable.
- Receipt of the IBI (Council Tax).
- Receipts of water, electricity and community fees.
- NIE (foreigners identity number).
- Wealth and income tax declarations from the last 4 years.
Obtaining a Licence
If the property has been subject to any structural changes without the corresponding building licence from the local council, the sale will not be able to go through. However, if the structural change is classed as minor building work (obra menor) then you will be able to proceed with the sale if you obtain the appropriate licence from the local council’s urban department.
On the other hand, if the building work carried out is deemed to be major (obra mayor), it is not so straightforward. Increasing the property in size, making changes to the exterior and the usage of any newly built or expanded area must all be considered. In cases of this kind, it is necessary to sign a new title deed in order to update the description of the property in the land registry. It is worth noting that it is particularly important this is done in situations in which the buyer of the property requires a mortgage. The bank will refuse to issue a mortgage on an incorrectly registered property.
In order to alter the title deed, you need a building licence and a certificate from the community of owners giving their consent to the building work in cases in which the property in located within a community. Once you have these documents, it is a fairly simple process to sign the new title deed and change the details in the land registry. If for some reason you cannot provide these documents, the particular case must be looked at to establish how a building licence can be given after the building work has been completed. It is worth pointing out that all of this can be avoided by obtaining the appropriate building licence for any changes you want to make to your property prior to beginning the work.