SELLERS GUIDE

Thanks to our experience in the management and intermediation in buying and selling property, Casa Marbella want to recommend to all people who want or are trying to sell a property, that sellers engage the services of a professional to assist and advise them in the process. Times have changed in the housing market and should adapt if the aim is to sell a home and not lose potential customers. In a trending market of price decreases, every day that housing sale follow lowers its value. The price of housing is a key fundamental in providing this and should be adjusted to market realities. In Casa Marbella conducting market research and investment daily international advertising, which reflects the current demand and the success of publication for homes on the Costa del Sol. Sellers need to be aware of several facts before entering into the process.

The Seller’s Tax Liability
Capital Gains Tax
The seller will be responsible for the payment of his Capital Gains Tax. This is the tax based on the increase in value of the property from the original purchase date to the date that it was sold on. As from 1st January 2012 the Capital Gains Tax has increased from 19% to 21%. Any conveyance costs involved in the buying and selling of the property can be deducted as long as these costs are accompanied by official receipts. Therefore, all purchase taxes, notary fees, legal fees etc. can be deducted from the calculations.

Plus Valia Tax
Sellers are normally also responsible for paying the Plusvalia Tax although this can sometimes be negotiated to be paid by the buyer. This tax is set by the local authorities and is based on the increase in the value of the land (not the property – the selling price has no effect on theplusvalia tax) from the date the owner acquired the property to the time of the present sale. The local authorities will determine the amount and is calculated according to the rate able value of the property and the number of years that it has been in ownership of the vendor.

Encumbrances
Sellers must also pay the fees for cancellation for any encumbrances on the property such as mortgages, unless otherwise agreed between buyer and seller. If the buyer is intending on purchasing with a mortgage then they might want to consider simply taking over the seller’s original mortgage (being careful to check the terms and conditions), as this will be cheaper than setting up a new mortgage.

Important factors to know when selling a property in Spain
Retention
If the seller is a non-resident and has owned the property for less than 10 years, it is important to be aware that the buyer is obliged to withhold 3% of the purchase price and pay this amount directly to the Spanish Tax authorities. This is a way of ensuring that the capital gains tax (CGT) is paid by the vendor and to prevent them from taking the money and not paying their tax bill. After the CGT is calculated, the seller will either receive a refund or be billed for an additional amount depending on the amount of tax that is due. If the buyer does not withhold this amount they will automatically become responsible for the sellers CGT.

Our support for the sale of your home: