If you currently have a Spanish mortgage on your property, this can be transferred to the new purchaser, if required. This would be discussed between the bank in question and the buyer.
Please note that when selling a property, the vendor has certain tax responsibilities that need to be attended to, upon completion of sale. Therefore, professional tax advice should be taken from an expert.
Once the purchase has been agreed, both parties solicitors will start the proceedings with regards to the legalities: copy of the escritura, a nota simple (land registry document which we would obtain) IBI and an inventory of any items involved in the sale and also a sales contract in at least Spanish and English. Providing all paperwork is in order, normally a 10% deposit is paid by the purchaser. This is paid directly to the vendor, or the solicitor. The time scale from agreement to signing the private contract is usually around 4 weeks.
Capital Gains Tax
Depending on whether you are a resident or not and also if you are re-investing into property, the amount of Capital Gains tax will vary. Your lawyer will be able to inform you of this.
What other taxes do I have to pay as a vendor?
It is al legal requirement that the vendor pay a tax known as the ‘Plusvalia’. This is a tax calculated by the Town Hall and is based on the years of ownership. It is not in anyway related to the Capital Gains Tax.
What length of time can completion take?
Completion very much depends on the agreement made between the two parties and can be as quick as a few weeks. If there are rental agreements or mortgages to be sorted out it can take longer.
Who prepares the sales contract?
The sales contract is prepared either by your agents lawyer or the lawyer of your choice. We recommend it is a local lawyer as this is a lot quicker.
Can I change my mind once I received a deposit?
If you receive a deposit and then choose not to sell the property, you are legally bound to return the deposit received in duplicate to compensate the buyers.