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Selling your Spanish Property

At Property Quest we can advise on how to sell your property, whether you are a Spanish resident or a holiday home owner, living in another country. It is very important to consider all the legalities involved in selling a property in Spain, and try and make the process as smooth as possible.

The Sellers Tax Liability

The seller is responsible for the payment of the capital gains tax.

Seller must also pay the fees for cancellation of encumbrances on the property such as mortgages, etc, unless where agreed otherwise between buyer and seller. The buyer shall pay these fees should he take over the 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. Tax auditors could feel that the selling price is too low and sellers may be given heavy fines for this. Your Lawyer should ask the tax office what is the market value of their property to avoid possible complications that could arise later. It is part of the Lawyers role in preparing all the sale of property documentation, to make sure that this process is as trouble free to the seller.

Tax Deposit on Non-Resident Property Sales

If you are non-resident wishing to sell your Spanish property, bear in mind that you will have a retention of the declared sale price withheld on of the buyer's behalf. This amount will be deposited with the Spanish Tax Office (Hacienda), which will be accounted against any 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! Your Spanish Lawyer will advise you in detail on the circumstances arising from the deposit or refund of this.

At Property Quest we can recommend a number of professional Lawyers that you can choose to deal with your property sale. Remember, we are here to help you, but ultimately the Lawyer that you choose is your decision.


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