Selling property in Spain is fairly uncomplicated; most of the work is undertaken by your Estate Agent, which is why choosing a reliable Estate Agent is so important.
We make selling your property a hassle-free event. We take care of all the pressures so you don't have too. We strongly pride ourselves on the service we provide which be believe to be second to none.
You will need to be in the possession of the following in order to complete the transaction:
. A copy of your Title Deed ·Urban Taxes or I.B.I. (this is the tax paid to your local council)
. An up to date receipt will suffice as proof of payment.
. Receipts (up to date) for all Utility bills i.e. Water, Garbage, and Electricity.
. A photocopy of your passport
. A photocopy of your N.I.E.*
. Where applicable, proof of any property maintenance payments**.
. If you have a Mortgage on your property, we will need the last receipt.
. To organize and supervise payments and completion
. To advise on taxes, registration and payment of fees
. To arrange payment by your bank for taxes, bills etc
. To advise you on making a will
Local Rates
Urban taxes or I.B.I. must be paid every year (in one payment) between the 15th of June and the 15th of July. It has to be paid in addition to possible community charges, and depends on the condition, size and age of the property. You as the owner are responsible even if you do not receive a rate demand. It is also your responsibility to find out the exact amount of the tax and to pay it between the dates stated above. Failure to do so will make you liable for a 20% penalty. |
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Capital Gains Tax (A)
(A) When you sell a property which you have owned for more than 10 years you do not have to pay capital gains tax. If you own the property for over 20 years, you are not obliged to withhold the 5% tax from the purchase price. In this way you might save a sum of money you would otherwise have to pay as tax, plus the loss of interest when 5% withholding tax has to be paid, and the professional fees to recover any balance of the withholding tax.
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Capital Gains Tax (B)
(B) Or: when the proceeds of the sale are for the purchase of a new home within two years of the sale. To qualify for this exemption, the property you are selling must be your permanent home, meaning you have to be a resident of the Canaries for tax purposes. |
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If the amount you have to pay for the capital gains tax is less than 5% of the purchase price, you can always apply for a refund. You would need to give name and number of your bank account in Tenerife, so that the Spanish tax authorities can reimburse your money. Please remember that the Spanish tax office will take no less than 7 months to return your money to the account. |
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