Selling a Spanish property

Annually we help hundreds of Scandinavians with the legal and economic management regarding sales of residences in Spain. The legal process connected to a property sale is more complicated than it is in Scandinavia. Further, new laws and regulations are always appearing that are important to have in mind. Scandinavian Management will guide you through this and manage the entire ordeal from start to finish.

Signing the title deed of the property is done before a notary, who also check that the legalities are handled correctly and establishes the final sales act in front of all the involved parties. After the signing of the deed you, as the seller should receive a copy.

Taxes in connection with the sale of a property

Plus-Valia is a Spanish tax and can be compared to a sort of capital gains tax to the municipal (It is the lands value increase from buy- to sale, which is taxed). It is complicated to calculate the tax, although the sum that is to be paid is not affected by the properties sales price.

Capital gains tax is paid to the government when selling a property. From the property’s sales price is the purchase price deducted, which firstly is recalculated with index scales. 20 % of the profit is then paid as the capital gains tax. For people who are permanent residents of Spain, different tax regulations may apply.

When selling a property the buyer is required by Spanish law to retain 3 % of the purchase price and pay this to the Spanish tax authority (as a deposition for the seller’s eventual capital gains tax). If this is not done the buyer will become responsible for the sellers capital gains tax towards the Spanish tax authority. Certain exceptions may apply.