Are you thinking of selling your property? Living Pollensa can always assist you.
Once you have decided to sell your property, what follows is very simple:
Signing of the purchase option contract:
There are a variety of option contracts;
Option contract of purchase - The option contract is a private contract and binding for the vendor. In consequence he obliges himself with it to sell the property to the purchaser. Usually with signature of this contract is paid a 10% of the purchase price as option rate. This option rate can be paid either directly to the vendor or deposited in the bank account of a third party, which usually is the lawyer involved in the purchase. To the buyer is granted a time limit between one and three months to exercise the option.
Exercising the option means, that the purchaser notifies to the vendor that he wishes to buy and grant the public deed of purchase, communicating a day and time of appointment at the notary to sign the public deed of purchase. In the option contract are agreed the consequences of failure to fulfill the contract, in case the vendor or the buyer finally do not appear to grant the public deed of purchase in the notary.
Private Purchase Contract - The private purchase contract is signed, when the buyer wants to purchase the property at the moment of signature of this private contract. In this type of contract is agreed the deferred price, the form of payment, the date of the granting of the public deed and the circumstances of default and cancellation of the contract.
Signing at the Notary - Once you have signed the option or deposit contract your lawyer/solicitor will co-ordinate the operation with the various people intervening in the purchase, to the final signing of the deeds at the public Notary .
TAXES and PAYMENTS
PLUSVALIAS PATRIMONIALES/ Inheritance tax. The seller, whether he is a Spanish resident or not must pay 21% on all benefits obtained discounting costs, when buying or selling a property.
If the seller is a foreign non-resident in Spain, the law obligates the buyer to retain from him 3% of the purchase price when signing the deeds. This retention must be deposited by the buyer at the Tributary administration within 30 days and this will go towards the Inheritance tax of the seller (21%) as before mentioned.
PLUSVALIAS MUNICIPALES/ Municipal tax. This tax is generated by the amount of years of ownership of the property and the cadastre value of the land. It is calculated by the Town Hall once the sale has gone through.
Capital Gains on selling the property, the vendor will be subject to tax on any profits made. Currently, non-residents are subject to 21% tax. Residents are subject to 21% on profits that are less than 6,000 Euros, 25% on profits less than 24,000 Euros and 27% on gains of more than 24,000 Euros.
Even though your Real Estate Agent will take care of, and make sure the transaction goes smoothly, it is always a good idea to have legal advisor to assess you during and after the process of sale/purchase.
The lawyer’s fees vary between 0,5% and 1,5% of the purchase price. If you wish, we can recommend a list of excellent multilingual professional lawyers in whom you can trust.
Real estate fees vary between 5% to 7% of the purchase price, plus VAT (21%) .