Jos Deuling,  Sunday, 26 May 2013

 

This article is part of a series of seven articles about selling a property in Spain. The other articles in the series cover the following topics:

Estate agent checklist
Sales contract and clauses
Leasing with the option to buy and problems with tenants
Overview documents required
Capital Gains tax and Plusvalia tax
Seller costs can be as high as 20% of the selling price

Reduce Capital Gains Tax

In Spain, you pay a substantial amount of capital gains tax. You may, however, deduct any costs that you have made for the maintenance and renovation of your home. So keep all invoices of maintenance and renovation work. You can also deduct agent and lawyer fees.

Recover overpaid property tax

You have to pay the Spanish property tax a year in advance. After the sale of your home, you can recover the amount of overpaid tax from the Spanish tax authorities.

Plan the transfer of the property at the beginning of the week

Your mortgage is repaid after the registration of the sale at the Registro de la Propiedad, the property register. If you plan the property transfer at the end of the week, then you run the risk that the property will be registered in the following week. Over the weekend, the money from the buyer will be in the account of the notary. You will pay mortgage interest during the weekend. That's a shame. Plan the transfer of the house at the beginning of the week.

Maintenance and renovation carried out by experienced professionals

Make sure that you hire experienced professionals for maintenance and renovation work. If you can show invoices from companies that have a good reputation, then the buyer will be reassured that the house is well looked after.

Forced sale

If you are forced to sell the property at short notice, it is wise to offer the house well below the market value. Keep the minimum sale price as recommend by the estate agents. You may expect them to know the local market and the current market value. If you want a price higher than the market value, then there’s little chance of selling your home. At present, the Spanish housing market has collapsed. It is even questionable whether you can sell your home at the moment. No matter which price you ask.

Wait for better times

At the moment, it is difficult to sell your property in Spain. You can keep your home for a few extra years and wait for better times. Many owners will probably do this at the moment. Perhaps forced by a looming outstanding debt on their mortgage.

Additional selling points

Try to collect as many as possible additional selling points prior to the sale. Tell about the neighborhood, the events, the environment, the shops, how far it is to the airport etc. If you have a character property in a unique environment, then use these features in your pitch.

Presenting your home

The presentation of your home is essential, it is the first impression that counts. Give the house a makeover.

Reduce Transfer Tax for the buyers

The buyers pay a transfer tax of 7% of the selling price. If you sell the movable property separately, then they have to pay less tax. Make it as easy as possible for potential buyers. These little things can tip the balance.