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Selling Property in Spain as a non resident

Selling Property in Spain as a non resident

Selling a house in Spain as a non-resident: Taxes and Documentation

If you’ve come this far, it’s because you’re probably thinking of selling a house in Spain. Before looking for a real estate agent to help you find a buyer, we would recommend that you prepare all the documentation and consider the taxes you will have to pay.

It is also important to know if you are a non-resident or a resident in Spain. According to the Spanish Tax Officea person is considered to be a legal resident in Spain when any of the following circumstances apply:

  • He or she is in Spain for more than 183 days of the calendar year
  • The base of your economic activities is in Spain.
  • Or when a non-legally separated spouse and his or her dependent underage children usually live in Spain.

Selling Property in Spain as a non residentDocuments required in the whole of Spain

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.

Other documents which may be required

  1. “Certificado de eficiencia energética” Energy Performance Certificate (EPC): This is the document that accredits the energy classification of the home. The energy label ranges from A to G, according to the level of efficiency. “A” corresponds to greater efficiency with a higher investment cost and “G” to properties built without energy efficiency requirements.
  2. Certificado de Inspección Técnica del Edificio (ITE)” Report of Building Inspection: For houses located in old buildings, it is necessary to certify that the building is in excellent condition, or if, on the other hand, it has any deficiencies or pending renovation works.
  3. Cédula de habitabilidad” Certificate of Occupancy: This is an official document that states that a building is safe to use and may legally be used. In order to obtain it, a technical report by a qualified professional is required.

Taxes when selling a house in Spain as a non-resident

When selling a property in Spain, even if the owner is not a resident in Spain, he or she must declare thetaxes selling property in spain 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% tax will be applied to citizens of the European Union, Iceland or Norway and 24% for citizens from any other country.

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.

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