Selling a property in Spain may seem straightforward when you have an interested buyer, but for a foreign owner the process can involve far more issues than you might initially imagine.
Documentation, contracts, taxes, potential encumbrances on the property, administrative procedures and the signing of the sale agreement itself are just some of the aspects that must be handled correctly before the sale is finalised.
At MAM Solicitors, we have been helping foreign owners sell their properties in Spain for over 30 years. Our team of solicitors specialising in international clients can guide you through the entire process, whether you live in Spain or are managing the sale from another country.
Because selling a property isn’t just about finding a buyer. It’s also important to ensure that everything is in place for the transaction to go smoothly.
What should you check before putting your property up for sale?
One of the best times to seek legal advice is before advertising the property.
Preparing for the sale in advance allows you to identify potential problems and resolve them before they can affect the transaction.
It is advisable to check that the property’s documentation is up to date and that the details appearing in the various documents are consistent with one another.
It is also worth checking whether there are any encumbrances, mortgages, outstanding debts or any other circumstances that might affect the sale.
Resolving these issues before finding a buyer can prevent delays and complicated negotiations later on.
The documentation required to sell a property in Spain
To complete a sale, you must have certain documents relating to the property.
Depending on the characteristics of each property, you may need, amongst other documents, the title deed, land registry details, an energy performance certificate, documentation relating to the IBI (property tax) and certificates from the owners’ association.
If any renovations, extensions or alterations have been carried out on the property, it is also important to check that these are properly documented.
For an owner living abroad, gathering all this information can be particularly complicated.
Therefore, having a solicitor in Spain who can review the documentation and identify any issues before the sale can make the process much easier.
What taxes do you have to pay when selling a property in Spain?
Taxation is another aspect that should be taken into account from the outset.
The sale of a property may give rise to certain tax obligations, and the treatment may vary depending on the owner’s circumstances.
In the case of owners who are not resident in Spain, there is also a 3 per cent withholding tax on the sale price, which the buyer must pay to the Tax Authority as an advance payment of the relevant tax.
This withholding does not necessarily mean that the owner will ultimately have to pay that amount in full. The tax situation must be analysed in accordance with the specific circumstances of each sale and, where applicable, a refund of any excess amount withheld may be claimed.
It is also important to bear in mind other possible taxes and costs associated with the transfer of the property.
Therefore, understanding the tax implications before finalising the sale can help you work out how much you will ultimately receive and avoid any surprises.
What happens if you still have a mortgage?
Having a mortgage on your home does not mean you cannot sell it.
However, you need to organise the repayment of the mortgage properly and ensure that the property’s registration details are correctly updated.
This is another reason why it is advisable to seek legal advice before signing.
Your solicitor can help you review the information relating to the mortgage, coordinate the necessary procedures and ensure that the property can be transferred correctly to the buyer.
What if you live outside Spain?
For many foreign property owners, one of the main difficulties is managing the sale from another country.
Travelling to Spain several times to sign documents, visit various organisations or sort out minor issues is not always practical.
In certain circumstances, it is possible to grant a power of attorney so that a representative can act on your behalf.
This can make the process considerably easier and allow certain formalities relating to the sale to be dealt with in Spain without you having to be physically present at all times.
At MAM Solicitors, we advise our clients on this option and can represent them where necessary.
Why choose MAM Solicitors to sell your property?
When selling a property in another country, having a solicitor who understands your situation and is familiar with the Spanish legal system can give you greater peace of mind.
At MAM Solicitors, our work does not begin on the day the contract is signed. We believe that a successful sale begins much earlier, by reviewing the documentation, identifying potential issues and preparing each of the necessary steps.
Our team can assist you with the legal review of the property, the contracts, tax matters, liaising with other professionals and the formalities required to complete the sale.
Furthermore, we have a multilingual team experienced in working with international property owners, which facilitates communication and enables us to explain each stage of the process clearly and simply.
Selling your property in Spain from abroad
If you no longer use your property as often, want to switch investments or have simply decided that the time has come to sell, planning the transaction properly can save you a lot of trouble.
For a foreign owner, having a trusted legal team in Spain means knowing that someone is looking after the legal and administrative aspects of the sale, even when you are in another country.
At MAM Solicitors, we have been assisting international clients with property transactions in Spain for over 30 years.
If you are thinking of selling your property, contacting us before putting it on the market can help ensure everything is in order from the outset and allow you to approach the sale with greater peace of mind.
