Selling a property (not only in Spain) can be tricky on the seller. Especially in this time of Corona!
People usually think it is not necessary to involve a solicitor and legal team when selling. Don’t risk it! When selling your house in Spain MAM Solicitors can ensure that you avoid any last minute hiccups which might otherwise ruin your sale.
Crucially, we also make sure that all your tax obligations are correctly fulfilled. Here’s the three most important topics to take into account:
- Details of the sale
- Completion
- Fees, expenses & Capital Gains Tax
Although Spain now offers better legal certainty when buying real estate, there are still cases in which buyers and sellers have to struggle with considerable problems or unexpected costs after the acquisition.
Also, if the seller does not live in Spain, we recommend:
- To sign a notarial power of attorney authorizing a person who is at the point of sale.
- If the seller is a foreigner and does not have a NIE or needs to be updated, we will apply for this NIE at the relevant police station.
- Before starting the operation, find out what taxes you will have to pay.
A foreign citizen who wants to sell a property in Spain has the same rights and obligations as a Spanish citizen.
It’s important to know about the importance of signing a notarized power of attorney that gives you the freedom to sell securely from your country of residence.
We believe it is important to legally plan and organize the transaction in order for the sale to be satisfactory. This is how we do it with all of our customers.
Some examples in other countries of Europe:
A) UK Process: In the judicial purchase and promotion process, the notary is not involved in a property sale at all. Seller and buyer are assisted in the transaction with the help of a single lawyer. Then it is the buyer’s lawyer and the seller’s lawyer who take control of the sales process from the first steps to the completion, make and submit the name change of the property, pay the price, taxes, etc. Both lawyers are the ones who look into the contracts, see to it that each party meets their obligations, pays taxes, organizes and receives and receives payments and completes the registration of the property with the new owner, etc.
B) CONTINENTAL EUROPE PROCESS: French, Belgian, Swiss, Dutch, German and others: in these countries the presence of the notary and the lawyer is essential for the purchase / sale of the property. They do everything. Both parties, buyer and seller, use the notary as the intermediary of the transaction from start to finish and the following:
- Bringing the parties closer together and formalizing the transaction more easily.
- Control of the fulfillment of each party’s obligation.
- Carries out legal, administrative and tax research for the property.
- Urban and building research of the property.
- Make and receive all payments from the sale.
- Complete the sales deeds.
- Complete the entry in the land register on behalf of the new owner.
- Report and pay taxes on purchases and sales
- Make the change to the contracts for the supply of water, electricity, local taxes, etc.
It is therefore advisable that buyers of property in Spain consult a qualified solicitor and legal team to represent them and a financial advisor who is familiar with local and international taxes and duties to deal with tax matters.
At MAM Solicitors, we have been successfully helping sellers (and buyers!) from all over the world for over 30 years. Don’t hesitate to get in touch!
