Selling Property in Spain as a non resident

To sell your house in any Spanish Autonomous Community there are a series of compulsory documents required for all territories. These documents are divided into two categories: those proving that you own the property and those proving that you are up to date with the payments related to the property.

Certification of ownership

1. Deed of the house or Title Deed: The document you received when you bought the property. This document is the main record that certifies that the property is yours. It is registered in the Land Registry (Registro de la Propiedad).
2. Identity Document: The document that enables the personal and unequivocal identification of citizens. For example: “NIE” (Foreigner’s Identity Number).

Certification of being up to date with payments

1. “Nota simple registral” Land registry record: This is a standard official document obtained from the Land Registry. This document accredits the status of the property. It contains data, ownership and possible charges on the property.
2. “Impuesto sobre bienes inmuebles” (IBI) Property Tax: This is the tax that is levied on the ownership of the property. Normally, it is paid once a year at the corresponding town hall. The receipt of the last payment must be presented.
3. “Certificado de estar libre de pagos de la Comunidad de Vecinos” Certificate of not having outstanding debts with the resident’s association: If the property is located in a community (building) or an “urbanización” residential area, a certificate by the property manager must be presented to prove that all the payments are up to date.
4. “Certificado de deuda pendiente y Cancelación Registral” Certificate of outstanding debt and Cancellation of encumbrances in the Registry: If the property has a mortgage at the time of sale, a certificate of the outstanding debt must be provided.

When selling a property in Spain, even if the owner is not a resident in Spain, he or she must declare the profits obtained to the Spanish tax authorities.

IRNR: Capital Gains Tax for non-residents

To calculate the IRNR (Capital Gains Tax), the difference between the acquisition and sales value must be taken into account:

• ACQUISITION VALUE OF THE PROPERTY: The value at which the property was acquired plus the notary’s fees, land registry fees, etc. arising from the purchase. Besides, the improvements and investments made to the property will also be added.
• SALES VALUE OF THE PROPERTY: Value for which the property is sold plus the expenses derived from the sales process: the real estate agency, notary’s office, etc.

Once the amount corresponding to the difference has been calculated, 19%.

Capital Gain or Tax on the Increase of Land Value (IIVTNU)

Capital gain or IIVTNU is the increase in value of the property during the years the seller has owned it. The capital gain tax depends on the increase in value of the land and the tax rate set by the municipality in which the property is located.

At Savloir. we recommend that you contact a local lawyer. This expert will review the entire process of selling a property in Spain and help you calculate the Sales Tax in order to avoid future surprises.