Introduction

While selling procedures are obviously the reverse of buying procedures, there are some things to look out for. Firstly property owners should be aware at the outset that they are subject to capital gains tax on the profits from their sale, whether they are resident or non-resident.

Secondly if a property is bought from a non-resident, then five per cent of the purchase price declared in the escritura must be deposited with the tax office in the vendor’s name. In other words only 95 per cent is paid directly to the vendor. Why? This deposit is designed to cover a non-resident’s liability for capital gains tax.

This chapter also covers compulsory purchase – a forced sale – and includes the controversial land grab law called Valencia’s Ley Reguladora de Actividad Urbanistica.

Assembling The Documents

The first step in selling a property is to assemble copies of all necessary documents. They need to identify the property, the person selling the property and proof that there are no debts or encumbrances on it. Creating a document file gives an impression that a seller knows what they are doing in the eyes of estate agents and buyers.

The most important paper is obviously a copy of the escritura which shows the registered owner with an incontestable title. It may well be that a copia simple will suffice. If the escritura has been lost another copy can be obtained from the notary where it is on file permanently. A prospective purchaser will no doubt obtain a nota simple at the Registro de la Propiedad which will confirm information in the escritura.

Next assemble some personal identification. A copy of a passport or residencia will do, but also include a copy of the certificado de empadronamiento issued by the town hall which will show names of the people residing at the property.

Include in the information pack an IBI receipt for the paid-up Impuesto Sobre Bienes lnmuebles, the local tax. This receipt will show the Valor Catastral, the official assessed value of the property for tax purposes. This value is almost always less than the real market value. The IBI receipt confirms the house exists, is registered for taxes and states the referencia catastral number which is required at the notary.

The notary and the Property Registry are concerned with ownership, loans and mortgages while the Certificado Catastral is concerned about a property’s measurement, boundaries and physical characteristics. So if selling a finca (a country house surrounded by land), include a Certificado Catastral in the documentation so it is absolutely clear what is on offer.

Present copies of bills for water and electricity. Any buyer will want to be sure there are no debts. For a property within a Community of Property Owners include details of the quota, the yearly charge and a copy of the statutes.

Lastly, is the house being sold furnished? Many Spaniards expect to purchase and sell houses furnished or part furnished. Ex-pats going back home do the same to avoid shipping costs. So to avoid any ambiguity include a furniture inventory even if it just says ‘No contents included’.

Appointing An Estate Agent

It is probably better to use an estate agent to sell a property than to go it alone. This is not a decision people feel happy about, because estate agents charge such high commissions. It is an expensive decision but it is often better to bite the bullet and, since Spanish estate agents rarely demand the exclusive right to market a property, a seller should list it with several agents.

Each agent will have a different type of agreement in which the commission or reserve price is stated if they bring a client who eventually buys the property. A good estate agent will nurse a sale through the entire process of finding a buyer, negotiating the price, drawing up a contract with an abogado, securing payment, signing before a notary, ensuring all necessary taxes and fees are paid and that utility services are transferred to the new owner.