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SELLING PROCESS

SELLING PROCESS

 

Euro Service Real Estate is an international real estate agency with over 30 years experience selling properties on Costa del Sol.

With us your property will have access to potential clients of any nationality.

In addition, as a member company of professional networks on Costa del Sol, Spain and internationally, your home will be offered by more than 500 companies around the world, helping you to sell it in short time.

We work with both foreign and national clients providing all them of real guarantees selling their property.

A multilingual and international team will be at your disposal to offer you the best service including complete legal advice by professionals with wide experience and specialised on real estate business.

Our experience and professionalism guarantee of us being leading company in the property market on Costa del Sol.

Do not miss your opportunity and contact us, you will not regret it!

Once we have found a buyer to your property, next step in the selling process will be the following:

Reservation document

 

The reservation document includes the price agreed between the parties and the terms and conditions of the agreement.

This document confirms the payment of an earnest money deposit, usually 6.000 €, for the reservation of the property. Said deposit is paid by the buyer to their agency or their legal representative to confirm the deal.

Once this payment has been made and the document is signed by both parties, the property is automatically off market.

From that moment the property will no longer be shown to any other client.

However when signing this document, it´s always indicated that the agreement is subject to paper work being legal. So if there is any legal issue and consequently a failed sale for causes due to the vendor, the agreement could be cancelled and the deposit would be returned to the buyer.

Legal advice

 

To simplify and help you through the whole selling process, we take care of everything, don´t worry! Our legal team with over 30 years experience selling properties everywhere or with your own lawyer, we carry out all legal process to verify the property status and get all the documentation needed of the sale:

  • All the documentation relative to the property.
  • Existence of possible debts and/or charges and encumbrances on the property.
  • Fees and costs relative to the property such as IBI, Rubbish and Community.
  • Availability of First Occupancy License (LPO) or non infraction certificate.
  • Obtaining of NIE number (Foreigners Identity Number) in case you don´t have it and you are a Non Tax Resident in Spain.

It´s worth to mention that if you can´t be present to sign all the documentation needed during the selling process because of work reasons or any other one, it is suggested that you grant a Power of Attorney to your legal representative.

 

Private purchase contract

 

Once the previous step (Legal advice process) has been completed, you can proceed to the sign the purchase contract, which will set out all terms and conditions of the sale, including final completion date.

When signing this contract, 10% of the total price will be paid to vendor bank account and the balance will be paid at final completion in the notary.

Title Deed signing (Final completion)

 

Both parties meet in the notary chosen by the buyer to proceed to sign the deeds.

In this act the buyer pays the balance to the vendor (take a look section 5 below indicated about taxes and expenses relative to vendor) and at same time take place handing over of keys to the buyer.

 

CONGRATULATIONS FOR THE SALE OF YOUR PROPERTY!

Vendor taxes and expenses relative to the sale

 

Vendor taxes and expenses selling its property are detailed below:

  • Plusvalia (Capital Gains Tax). It means increase of the value of Urban Land that you own. It is a council tax based in the plot cadastral value of the property by the town hall. It´s calculated from the date you bought the property until the date you sell it.

Its amount depends on the number of years you have own the property until the date of the selling of it.

The law estates a maximum of 20 years, so if you own the property for longer time, the town hall will not be able to charge you more than those 20 years before mentioned.

If you have owned the property for less than 20 years, the amount of this Plusvalia tax will be based on the number of years you have owned the property.

It´s worth to mention that if vendor is Non Tax Resident in Spain, this amount of plusvalia must be deducted of the final sale price by the buyer to secure its payment.

The Plusvalia tax will be exempt for sale with losses that can be shown through documents (according to judgment 2499/2018 of the TS).

 

  • 3% IRNR (Income of Non Tax Residents)

It is a tax relative to those vendors who are Non Tax Residents, that is those people who do not declare their incomes in Spain.

This percentage is calculated according the selling price of the property.

In the case of a Non Tax Resident in Spain, said amount must be deducted of the final sale price by the buyer to secure its payment.

 

In any case the sale of a property carries with a change of capital (gain or loss) that is based on the difference between the sales price (plusvalía and costs will be deducted) and the purchase price (adding taxes and costs) and the seller must take this into account when making his income statement both in the case of being a tax resident in Spain (income tax return, form 100) or in the case of being a non-resident (IRNR, form 210).

It´s convenient to make this tax forecast to avoid surprises when it comes to settling the income with the Treasury since its settlement and payments comes after the signing of the deeds. This declaration takes place, in the case of the tax-resident, the following tax year of the sale (April-June) and in case of non-residents it comes within four months after signing the deeds.

Non-residents should remember that the before mentioned 3% payment entered with form 211, will be credited on form 210 and the surplus will be entered into the Tax Agengy in case the tax exceedes that amount withheld. Conversely, on form 210 the amount is returned in full if the sale is made at a los or partially if the sale is made at a lower profit which generates a minor tax liability after withholding tax.

 

  • Agency fees

The agency commission for the entire sale process are usually 5% + VAT (21% of the 5% before mentioned) calculated according the final sale price.