Most guides to selling property abroad focus mainly on the legal aspects, which of course are important but that is not the end of the story. Every estate agent has their own charging structure and the agent you choose is really down to you and what you want to pay for, more final commission or more fixed fees, the choice is yours. Just make sure you are aware of exactly what charges you are accumulating. This guide is about selling a property so we will assume you know more about estate agents than we do in your area as you must have bought your property at some point.
The difference is that now as the seller the onus is on you to have all the documentation ready. This includes the title deeds of the property, receipts for local taxes paid, utility bills, community statutes and bills paid. The complication here is that in the post Brexit world you may not have a residencia card. Previously we have never needed one as an EU citizen. Do not let buyers negotiate the price down because you do not have a residencia card. You do not legally need one to sell a property but I have heard anecdotal evidence of it being used in negotiations. If you are not resident in Spain, 5% of the purchase price (no more!) is retained by the buyer to be paid in tax by the seller on completion.
Just as when the property was bought both you and the buyer must meet with the notary to sign the paperwork.
Capital Gains Tax
If you need to pay Capital Gains Tax your tax liability may be more than the 5% retained by the buyer. If this is the case you need to pay the outstanding within 30 days of the sale. I would suggest that you have the proceeds of the sale deposited into a Euro account. You can then pay any Capital Gains Tax from that account. Capital Gains for non residents is 35%. If you do still have your residencia card then CGT is only 15%. If you use a UK bank account, you will incur fees when the proceeds are deposited. You will also be charged with each bank transfer you make. If your tax liability was less than the 5% you can apply for a refund.
Plus Valia is a local tax that is often just a few hundred Euros. Some sellers negotiate to make the buyer pay this. This is similar to the way that people negotiate over Stamp Duty here in the UK.
Once you have the final sum of money transferring it back to the UK is the last step. We have found some of the best international transfer agents. You can apply online for a free quote from them all using a simple form. The amount you save using an agent like this can make a huge difference to your final profit. Remember the standard bank fees for international transfers can be exorbitant.