LEGAL ADVICE FOR BUYING OR SELLING PROPERTY IN SPAIN
If you are going to buy or sell a house or other type of property, Desmon Abogados offers personalized legal advice at a competitive price. Our clients’ satisfaction is our main concern. For this reason, we can confidently state that obtaining legal advice before buying or selling a property is the best way to avoid any complications during the process or after it has been completed.
Careful planning with your lawyer is the key to buying or selling property without worries and in the shortest time possible. We will always look out for your best interest and security.
Our professional services comprise drawing up the contract, protecting your rights and guaranteeing that the property complies with all the legal requirements. This includes making sure the seller is the legal owner of the property, that all the necessary licenses and permissions are in order, and that there are no outstanding debts attached to the property.
At the same time, we will prepare a complete breakdown of all the costs involved in the purchase, so that you will always be informed about how much money to transfer to Spain.
At the moment of signing the Title Deed, we will accompany you at the Notary office, and if necessary, a member of our staff will translate the Title Deed, prior to signing, in the presence of the notary. We can also sign the Deed in your name if you have given us the authority to do so (signed a Power of Attorney). In some cases, this could advisable, as it speeds up the process, and makes travelling to Spain to sign the Title Deed unnecessary.
Once the Deed has been signed in the presence of the notary, we will assume the responsibility of paying the corresponding taxes and presenting the Deed in the Land Registry. We will also take charge of registering all the utilities in your name, and arranging the direct debit payment of these and local taxes (IBI).
Once you have decided to sell your property, we recommend that you see a lawyer, even before putting it on the market. This could help you to avoid any problems with the sale by guaranteeing you have all the necessary documents in order.
The documents which are necessary in order to sell your house or property are the following:
- Copy or original purchase Deed
- Copy of NIE and passport
- Habitation license of the property (issued at the Town Hall)
- Latest local tax bill paid
- Utility bills
- Non-resident taxes paid from when you purchased the property
- Energy Certificate (CEE)
- Certificate from the administrator of your community of owners stating that you have no outstanding debts with them
If you are missing one or some of these documents, we can help you to obtain them, as the buyer must be provided with them in order for the sale to be completed.
This said, once you have a potential buyer for your house or property, the first step is to draw up a private contract, which should be signed by you and the buyer. Normally, this contract establishes that the buyer will pay a deposit, and that the seller will take the house off the market.
To sign the Title Deed, the buyer, with a representative from the bank, if they are buying with a mortgage, you (the seller) and your lawyer meet at the Notary office. If you prefer, you can authorize us to sign in your name, by giving us a Power of Attorney. Since the Title Deed is in Spanish, if you require a translator, a member of our staff can translate the contents of the Deed in the presence of the notary.
At the Notary office, the buyer pays the agreed upon amount, and the seller gives the keys to the property to the new owner. If you aren’t a Spanish resident, the buyer will deposit 3% of this amount with the Tax office, pending the assessment of the Capital Gains Tax. If you have made a profit from the sale, you will be taxed 21%. Assuming you have made no profit from the sale, and are up to date on your non-resident tax payments, our accountants can request the return of this 3%.
If the house is your principal residence, and therefore, you are a Spanish resident, and you are selling it at least three years after having bought it, you are not required to pay a Capital Gains Tax.
Finally, you will be required to pay the Plusvalia Tax, which is a tax based on the increase in land value the property has experienced since you bought it. We can calculate this amount and take charge of its payment for you.