GUIDE TO SELLING IN ANDALUCIA

Preparing to Sell

When you ask any reputable agent to discuss selling your property they will ask you for the following documents.  These are required by law and once you have provided them you can rest assured that the work of the lawyers gets underway without delay as soon as there is an agreed sale.  The documents required are:

·       Escritura

·       IBI and Basura Receipts

·       Community Fees Receipt

·       Copy of all utility bills

·       Nota Simple

·       Energy Performance Certificate

Your Costs and Taxes

Real Estate Agents fees on the Costa del Sol are normally 5% of the sales price plus IVA.

Legal Fees

Fee for the preparation of the Energy Performance Certificate

Capital Gains Tax (There are exemptions to CGT for residents under specific circumstances)

Plus Valia. This is a tax on the increase in the value of the land since it´s last sale. This also applies to apartments but the tax will be much smaller for apartments than for a villa on a large plot.

Withholding Tax: Non Residents are levied a 3% withholding which can be reclaimed

Establishing a Selling Price

Online you will be able to see the asking price of comparable properties but remember these are only the asking prices and not the final selling price.  If an agent advises you to put your house up for sale with a price that seems inflated then it probably is.  A good agent, with a record of sales in your area, will be advise you on what you can expect.  Remember there are many variables which affect the value of a property such as its position, orientation, size, condition and views.

Choosing A Real Estate Agent

It is important to chose an agent with an office and a web site which is going to attract potential clients.  After all you would not want to entrust your keys and home to someone you cannot find after the initial meeting.  Expect to pay market rate for your agents services, normally 5% plus IVA, if the service is discounted then you probably won´t achieve your goal.  Also do not get tempted by an agent offering a sales price for you and they put their commission on top as you could be paying a lot more than the market rate.

GLOSSARY OF TERMS

Abogado	Lawyer / Solicitor
Administrator de Fincas	Administrator of the community
Catastro	Land Office *concerned with the measurement and description of property
Comunidad de Propietarios	Community of Property Owner
Escritura de Compraventa	Contract for the sale of a property
Escritura or Escritura Publica	The title deed of a property
Factura	Bill
Gestor	Spanish licensed administrator for official procedures e.g. obtaining NIE, importing a car etc
Hipoteca	Mortgage
I.B.I.	Annual Real Estate Tax
Impuestos sobre el Patrimonio	Wealth Tax
I.V.A.	Spanish value added tax
Nota Simple	Certificate from Property Registry showing any debt on a property
Notario	Notary
Plus Valia	Municipal tax on increase in the value of the land since last sale
Registro de la Propiedad	Property Register
Subasta	Auction
Urbanismo	Town Planning Department
Valor Catastral	Assessed value of property for tax purposes