LawTalk
Selling property
Clients who own property in Spain are often concerned about both the taxes they will pay on sale and the transfer of their funds after sale . For British clients there can be the additional worry about converting the funds into Sterling from Euros . If you are considering selling , it is a good idea to get legal advice early on so that you can make a decision about sale price , taxes and costs , and converting your currency .
In a number of transactions between British people , we have been able to undertake the transaction in Sterling , provided the Notary is satisfied they have evidence of the payment for the sale . Generally , the costs to the seller are the local improvement or Plus Valia tax payable to the Town Hall and any Capital Gains Tax ( CGT ) at 19 %.
If there is a mortgage on the property which will be paid off on sale , your lawyer will ensure that the bank is available on the day of signing the deed to cancel the mortgage . All other debts such as Community of Owners ’ bills , utilities , etc , can be settled on the day , or retentions made to cover these costs .
For non-residents there is also a 3 % retention on the sale price which is on account of CGT . The purchaser has a legal and fiscal obligation to lodge this money with the tax authority . If you have not made a capital gain and are up to date with your non-resident taxes you can apply for the return of this 3 %.
Your lawyer can arrange this but in some cases you may have to wait some months before the return of the funds .
If you are not able to be in Spain on the day of sale you can grant a Spanish form of Power of attorney to lawyers to act for you and to sign the Notarial deed .
There is still some uncertainty about the obligation to pay Plus Valia to the Town Hall when you make a loss on the sale . Each case has to be treated on its merits , as although some Town Halls are still requiring payment , some appear to accept that if the value of the land has not increased during your ownership and you have made a loss , you do not have to pay . This is where a lawyer can assist in providing advice on your particular case .
For more information contact us on 952 527 014 or email info @ decottalaw . net .
De Cotta Law ( De Cotta McKenna y Santafé ) Mijas-Costa / Calahonda – Coín – Nerja – Tenerife
Nerja Office : - Calle Diputación 11 , 29780 Nerja Tel : + 34 952 527 014 Fax : + 34 952 523 428 www . decottalaw . com
E-mail : nerja @ decottalaw . net
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