How to sell a Spanish property

Necessary documentation to sell a property

In order to sell a home, it is necessary to have updated documents related to it and its owners.

1.- Identity Documents — Passports and NIE Number

The identity document serves to identify you as the owner and seller of the property. You will have to include this number in all the documents that are going to be signed during the sale process.

2.- Property title or deed of the Housing – “ Escritura publica “

It will be  necessary to have documentation that proves that the house is yours. With this document, real estate operations that affect this situation can be carried out.

3.- Energy Efficiency Certificate

The Energy Efficiency Certificate  is  mandatory for any residential real estate operation, both for sales and rentals. A technician comes to the home to carry out a study and assesses the energy information of the property, as well as issuing a report on it and it will be valid for 10 years.

4.- Certificate of Occupancy- “ Declaracion responsable  “

This document confirms that the property meets the technical and sanitary requirements that allow minimum habitability conditions.  It is valid for 10 years.

Having this document is essential for registering water, electricity, and gas supplies.

5.- Real Estate Tax (IBI)

This local tax is paid every year by the owner of the propert

When selling the home, it is important that the buyer can check, with a document, that the IBI has been paid every year to show that the tax is up-to-date. Thus, the next receipt will be the responsibility of the new owner.

6.- Service bills

You will have to produce copies of the latest paid service bills  like for water, electricity and gas.

7.- Certificate of being up-to-date with the Community of Owners

When the property is part of a community of neighbours, the owners have to pay a monthly fee to meet the various expenses of the common areas. Before proceeding with the sale, the property must be up-to-date with payments, that is, without outstanding debts. The secretary or property manager can issue a certificate to deliver to the buyer.

8.- Pending debt certificate and Registry cancellation in case you have a MORTGAGE

If the property is mortgaged, it will be necessary to get a pending debt certificate.

In this document, the financial entity indicates the amount that remains to be paid at the moment of the sale. This amount can be paid before transferring the flat or house, or it can be assumed by the buyer, deducting it from the total agreed price. If there is no pending amount, the debt cancellation deed must be registered so that the mortgage no longer appears in the Property Registry.

9.-  Information from the Land Registry Office  “ Nota simple”

Last but not least, it is highly recommended to include the nota simple provided by the Property Registry. It contains all the information related to the property: who the owners are, where it is located, the characteristics of the property, and if it has any mortgage or other type of charge. Including this document provides maximum transparency from the first contact with the buyer. 

In  EASYLEGALS  we take care of MOST OF THE LISTED DOCUMENTS required for the sale such as :

 Energy Efficiency Certificate

 Certificate of Occupancy- “ Declaration responsable  “

Certificate of being up-to-date with the Community of Owners

Information from the Land Registry Office  “ Nota simple”

WHICH COSTS AND TAXES WILL THE SELLER  BE FACED WITH :

1.- Plusvalía tax (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana)

It is a  local Spanish property tax levied on the increase in the value of urban land when a property changes hands payable by the vendor for the years the seller owned the property .

It is payable directly to the local Town Hall (Ayuntamiento) of the municipality where the property is physically located

2.- 3 % NON RESIDENT TAX OVER  THE VALUE OF THE SALE OF THE PROEPRTY :

When the seller is a non-resident in Spain and sell a property, the buyer is legally required to withhold 3% of the total purchase price and pay it directly to the Spanish Tax

This 3% retention is not a final tax; it serves as an advance payment toward your potential Capital Gains Tax (CGT) to prevent non-residents from leaving the country without paying their tax obligations.

1. How the “3 % Retention “Process Works

1. At the Notary: When signing the public deed of sale, the buyer pays  the seller 97% of the agreed purchase price and holds back the remaining 3%.
2. Buyer’s Deadline: The buyer must deposit this 3% with the tax authorities within 1 month of the sale date, using the Tax form model 211. The buyer must provide the seller with a copy of this paid form as proof.

2. Calculating the Final Capital Gains Tax

Non-residents face a flat 19% tax rate on the actual net profit (capital gain) made from the property sale.

• Net Profit = Sale Price (minus selling expenses/fees) – Original Purchase Price (plus original purchasing costs, taxes, and home improvements

3. Filing Your Tax Return (Two Possible Scenarios)

The seller has  a strict timeline of 4 months from the sale date to file the  final non-resident tax return using Model 210 on the Tax Agency Portal.

• Scenario A: Your 19% CGT is higher than the 3% retention.  The seller  must pay the difference to the Spanish Tax Agency when you file Model 210.
• Scenario B: Your 19% CGT is lower than the 3% retention (or you sold at a loss). The seller is entitled to a tax refund of the difference from the Spanish government

EASYLEGAL WILL BE HAPPY TO HELP YOU TO PRESENT YOUR TAX RETURN

3.- Latest service bills ) like for water, electricity and gas) , Local tax ( IBI) and community fees

Plus all the before mentioned documents ( Energy Efficiency Certificate,  Certificate of Occupancy, Certificate of being up-to-date with the Community of Owners) if there are not available or have expired the date of the sale.