A&G Lawyers would be pleased to assist you in the sale of your property. People sometimes think it is not necessary to involve a lawyer when selling, but experience says it is more than sensible to appoint one to make sure all your tax obligations are correctly fulfilled.
Here’s a brief explanation of the most important topics to take into account:
Details of the sale and signing of a reservation contract: To secure an offer on a resale property, it is common practice for the buyer and seller to make a “private contract” in advance of the official signing of the Title Deeds. A&G lawyers will take care of all that. The sellers need to provide us with copy of the Deed of the house & all the contact details of the other parties. We also will need the latest bill for water, electricity, local rates (IBI/Suma), community fees and rubbish collection, as all utilities bills must be up to date. If there is any debt we will withhold the necessary funds on completion to cover such bills. If there is a mortgage upon the property we also need your bank contact details.
Signing the deeds at the notary office: Once all parties are ready to complete, an appointment at the Notary Office will be made in order to get the ownership of the property transferred to the new owner.
Fees, expenses & Capital Gain Tax: As a vendor, you need to be aware that you are liable for the payment of Plusvalia Tax to the Town Hall where the property is located. This is not a fixed tax so we need to request a pre-liquidation from the Town Hall. We will need a copy of your last local rates.
The seller is also liable to pay Capital Gain Tax from the sale of his/her real estate property. Capital gain tax rate is 21% on the profit of the sale. In plain words, the taxable profit is the difference between the transfer value and the acquisition value.
If the vendor is a non resident in Spain the buyer is legally obliged to set aside and deposit 3% of the sale price with the Spanish Public Treasury on completion. This is retained by the Treasury until your Capital Gain Tax liability has been settled. For the seller, this retention acts as a payment on account of capital gain tax arising from the transaction. Should the amount withheld be greater than the tax liability, the seller is entitled to a refund of the difference. If the amount is lower, the seller is obliged to pay the outstanding capital gain tax.
Our conveyancing service includes the following:
- Completing all investigations to see if the plot is freehold and all utilities bills are up to date.
- Taking care of cancellation of any existing mortgages.
- Taking care of coordinating all parties for completion at the notary and assisting on completion in your own language.
- Payment of your plusvalia tax.
- Calculation and serving your capital gain tax return.
- Cancellation of direct debits.