The prospect of selling property abroad can at first seem daunting, but with the right advice and preparation it is actually a surprisingly straightforward process…

Valuations of Property
You will have to decide the price to ask for your house. We can arrange for a valuation to be carried out if you would find this of assistance. The valuation can either be a free valuation carried out by LiveEsatet or it can be an official valuation, for which a substantial fee will be payable. The former type of valuation is usually sufficient for marketing your property.

Choosing an Estate Agent
We offer a full Estate Agency service - LiveEsate speciales in homes in Spain.

What price should I show in my Contract?
For many years there has, in Spain, been a practice of showing in the contract a price less than the actual price agreed for the sale. This can, initially, save both the Buyer and the Seller some tax, but it can lead to a lot of problems later. Not surprisingly, the authorities have tightened up on this practice. The price that should be declared is the full value of the property - discounting any sum received in respect of furnishings etc. It is normally highly dangerous to declare less than 80% of the price of the property. The Spanish Notary may refuse to sign the title deed if he considers that the price to be declared is too low. Even if he does sign it, the tax authorities have five and a half years in which to challenge the declared price and to raise a supplemental demand for tax - plus interest and penalties.


What about the money I receive?
You may usually receive payment in Sterling in the UK or in Euros in Spain. Since February 1992 the Spanish Exchange Control Regulations have been lifted. It is normally easier for you if we can arrange for payment in the UK as there can otherwise be delays, sometimes considerable, in transferring the money from Spain.
You should also bear in mind that, unless you have been the registered owner of the property for over 10 years, it is now the buyer's responsibility to lodge 5% of the purchase monies with the Spanish tax authorities on behalf of the Seller. This responsibility is the same whether the money is paid in Sterling or in Pesetas. The tax authorities retain this deposit until they have assessed the taxes, including capital gains tax, that are owed to them by the Seller. Once the Seller's tax position has been assessed, any surplus monies should be returned to the Seller. The authorities may take up to a year before returning any money.
Therefore, the Seller should take into consideration that he/she might only receive 95% of the agreed sale monies when negotiating the sale price with a prospective buyer.


Can I be paid by instalments?
Arrangements can be made for payment of the price of a property in Spain by instalments. There are various methods of doing this and we would be pleased to advice as to which may be the most suitable in your circumstances.
What does the conveyancing process involve in Spain?

You will probably be familiar with the Conveyancing process in England. The system in Spain is in many ways very different from the British system although some parts of the two systems are similar.
The first and most important thing to say is that you should NEVER sign ANYTHING until you have sought independent legal advice.

Once you have asked us to look after your sale for you, we will confirm the title of the property and, in most cases, prepare a preliminary or, as it is known in Spain, "private" contract to transfer it into the name of the buyer. This will be drafted so as to protect your interests. When this is signed you will, typically, receive 10% of the agreed price as a deposit.

Once this has been done, it is necessary for the official Contract/Conveyance ("the Escritura") to be prepared and then signed before a Notary Public in Spain.

The Notary is a public official who is there simply to put on the public record the fact that this document has been signed in his presence and understood by the parties concerned. He is not there to advise as to whether the document is valid or fair and he is certainly in no way there to protect either your interests or the interests of the person buying the house.

Do I need to be in Spain to sign the deed of sale?
Only those persons or companies named on the property title deed have the right to sell any property in Spain, unless a notarised power of attorney has been given to a third party.

Usually it is necessary for the person selling the house to attend in person before the Notary but, if this is inconvenient, arrangements can be made for a Power of Attorney to be granted enabling another stipulated person to attend on their behalf. We normally recommend that we and our Spanish associate be named in the Power as this can aid the smooth progress of the case and, of course, giving the Power to us ensures that it will not be abused.
It is when the Escritura is signed in front of the Notary that the money is handed over to the person selling the house, less any retention that must be lodged with the Spanish tax authorities.

The seller's tax liability
The seller is responsible for the payment of the capital gains tax, though sometimes it is agreed that the buyer pays it. Seller shall also pay the fees for cancellation of encumbrances on the property such as mortgages… otherwise is agreed between buyer and seller. The buyer shall pay these fees should he submit to the initial seller's mortgage. In the past, sellers used to declare the sale price much lower than the approximate market value, in order to save money on tax purposes. Things have changed since then, Tax inspectors could feel that the selling price is too low and sellers may be applied heavy penalties. Your Lawyer should ask the tax office what is the market value of your property to avoid possible complications that could arise later.

What about all the utility billsand paperwork?
You will probably wish to have the electricity, water and rubbish collection charges transferred from your name. You will need to notify the Town Hall that you no longer own the property. We can assist you with all of these things.
You will need to make your Spanish tax declarations in order to recover any unused balance of the retention paid to the Spanish tax authorities. Once again, if you wish, we can assist with this work.

Tax deposit on non-resident property sale
If you are non-resident willing to sell your property located in Spain, bear in mind that you will have a 5% of the declared sale price withheld by the buyer. This amount shall have deposited with the Spanish Tax Office (Hacienda), on account of the capital gains tax. Once your tax liability is assessed, you will either have to pay more to the Spanish Tax Office or will get a refund of the portion deposited, depending on your profit. This requirement has been implemented in Spain to prevent non-resident property sellers taking the money and running. A Spanish Lawyer may advise you in detail on the circumstances arising from the deposit or refund of it, this will also save you time-consuming and bureaucratic proceedings.