For overseas property investors invested in Spain there will come a time for selling Spanish property. Whether it be to upgrade, downgrade, or you simply feel homesick, when it comes to selling up there are a few things to remember about selling Spanish property.
Spain is one of the most popular destinations for overseas property investors to buy property, especially from the UK, so finding a buyer may be the easiest part.
When selling Spanish property, the same as all property, getting the price right is key. You don’t want to undervalue your property, but if you overvalue it you could be waiting a long time to sell while the property goes stale on the market.
Ask agents for valuations and compare your property to other similar properties in the area before deciding on a price.
Bear in mind that you are selling a property, not a car! The time it takes to find a buyer for your property can obviously vary, but once a buyer is found it will normally take around two months to complete the transaction. This could be a bit speedier if it is a cash buyer.
Fixtures and Fitting
When selling Spanish property many buyers will expect the sale to not only include fittings and kitchen appliances. It is common when selling Spanish property to also include all of the furniture as well, so expect offers to be based on including everything in the property.
Agent Selling Fees
If using an agent, discuss how their fees will work. Will their fees be factored into the overall cost of the property, or will commission be paid at an agreeable amount post-sale?
It is important to confirm the level of fees the agent will charge before starting the process.
It may be that capital gains tax is not applicable, but all non-resident sellers are likely to be subject to a notary of 3 per cent withholding tax.
It is important to be aware that 3 per cent of the sale price is likely to be held back, although this can be reclaimed by instructing a Spanish tax representative.
Be aware that when selling Spanish property, the transaction is likely to be made in Euros.
If paying into a UK account, you may have to pay a fee to the Spanish bank that can amount to a few hundred Euros.
You will then need the Spanish bank to exchange the Euros into Pounds, which will work out at around 1 per cent of the total value. If the figure to be transferred is in the hundreds of thousands, this will represent a sizeable amount of money.
When selling Spanish property, it is always worthwhile seeking professional advice over the process. This will of course cost, but could result in you saving money in the long term.