calculation of costs to sell my house

Hi,
I am french and we have a house in Spain that we want to sell. Sorry for my english in advance :-)
We try to understand how much will be the costs for us, sellers, if we sell our house.
we want to sell it between 160 and 180 000 depending on the offers we will have.
And we have some real state on it, but we add the % of the real state agent on the top of the price of course (usually they charge 5% + IVA).

my questions are:
1 - as the owner (my partner) is not resident, (he has only the NIE), there is a tax of 3% of the value of the house. is that correct?

2- how is calculated the "plu valia" tax?

3- how much is normally the cost for the notary ? Is it the seller or the buy who should pay the notary ?

4- what is the "re-sale purchase tax" exactly? does the seller has to pay this tax as well? how much is this?

5- and we heard about the "registro de propiedad" which is another tax for the buyer as well?? what is it exactly, and how is it calculated?

6- regarding the cancellation of our morgage: we have heard that the bank can charge between 1 or 1,5% of the rest to be paid. is that correct?

7- And on the top of that, there is another tax regarding this point with the notary : is it true?

8 - As we are not living in Spain, and we dont speak spanish very well, we start to think that we will probably have to take a laywer or a sollicitor for all the "papers work"...
I have heard that usually they charge 1% of the value of the house. is that correct?

9- We have some debts with the community that we cannot manage to pay anymore, so we wait until we have an offer to pay it, just before the deal of course as we are aware that all debts has to be clear. Do you think this could be a problem?

10- last question! Is there different steps in the selling deal?
For example in France, you first sign a "promise of sell" without any money in the game. After a delay of 3 months, you go to the notary for the final signature and money story...
Is it like this in Spain? Do you have a delay between the firt step and the "real one"?
and do you have to ask for a certain amount of money for the first step or not??

Sorry for my questions, maybe it's too much!
Thank you so much for your help!

Regards
Celine

Bonjour Madame,

Lots of questions, yes. Your English is just fine, wish my French was as good.

my questions are:

1 - as the owner (my partner) is not resident, (he has only the NIE), there is a tax of 3% of the value of the house. is that correct?

Actually, it's not a tax, its a retention that is practised on non-fiscal residents on account of thier Capital Gains Tax (CGT for short) liability on selling. CGT is actually paid on the following year after the sale.

You have a detailed explanation on how this works out right here:

http://belegal.com/forums/showthread...=118&page=2#18

2- how is calculated the "plu valia" tax?

The Plus ValÃ*a is a tax calculated by the Town Hall where your property is located based on the cadastral value of your property and a notional (imputed) increase in the land value year on year.

Hre's a link to a decent gizmo which gives you a rough idea on what you owe for Plus ValÃ*a tax:

https://www.prpmalaga.es/web/plusval/formplus.php

3- how much is normally the cost for the notary ? Is it the seller or the buy who should pay the notary ?

The Notary's fees follows a sliding scale in relation to a number of factors. A recent change in law has made them 5% cheaper much to their disgust.

Notary fees are paid normally by the buyer unless agreed otherwise.

And if you are really curious as to how much they are:

https://www.boe.es/boe/dias/2002/06/...2779-22844.pdf

Número 2. Documentos de cuantÃ*a.

—1. Por los instrumentos de cuantÃ*a se percibirán los derechos que resulten de aplicar al valor de los bienes objeto del negocio documentado la siguiente escala:

a) Cuando el valor no exceda de 6.010,12 euros: 90,151816 euros.
b) Por el exceso comprendido entre 6.010,13 y 30.050,61 euros: 4,5
por mil.
c) Por el exceso comprendido entre 30.050,62 y 60.101,21 euros: 1,50
por mil.
d) Por el exceso comprendido entre 60.101,22 y 150.253,03 euros: 1
por mil.
e) Por el exceso comprendido entre 150.253,04 y 601.012,10 euros: 0,5
por mil.
f) Por lo que excede de 601.012,10 euros hasta 6.010.121,04 euros: 0,3
por mil.
Por lo que excede de 6.010.121,04 euros el Notario percibirá la cantidad
que libremente acuerde con las partes otorgantes.

4- what is the "re-sale purchase tax" exactly? does the seller has to pay this tax as well? how much is this?

The Transfer tax of 7% is borne by the buyer.

5- and we heard about the "registro de propiedad" which is another tax for the buyer as well?? what is it exactly, and how is it calculated?

It's the Land Registry. It's not a tax, its a legal fee charged by Land Registrars to have the property lodged under your name which also follows a sliding scale dependant upopn the value of the asset. In French its "frais".

Número 2. Inscripciones.—1. Por la inscripción, anotación o cancelación
de cada finca o derecho, se percibirán las cantidades que fijan
las siguientes escalas:
a) Si el valor de la finca o derecho no excede de 6.010,12 euros
24,040484 euros.
b) Por el exceso comprendido entre 6.010,13 y 30.050,61 euros, 1,75
por 1.000.
c) Por el exceso comprendido entre 30.050,62 y 60.101,21 euros, 1,25
por 1.000.
d) Por el exceso comprendido entre 60.101,22 y 150.253,03 euros,
0,75 por 1.000.
e) Por el exceso comprendido entre 150.253,04 y 601.012,10 euros,
0,30 por 1.000.
f) Por el valor que exceda de 601.012,10 euros 0,20 por 1.000.

En todo caso, el arancel global aplicable regulado en el número 2 del
arancel no podrá superar los 2.181,673939 euros.

6- regarding the cancellation of our morgage: we have heard that the bank can charge between 1 or 1,5% of the rest to be paid. is that correct?

Depends what you agreed and signed with them in your Mortgage deed which acts as a chart of constitution ruling on the Mortgage loan's terms and conditions. This is binding unless they want to charge you less for whatever reason. So you better check what you agreed to on signing the Mortgage deed.

10 Common Abusive Clauses in Spanish Mortgage Loans - 4th June 2009

7- And on the top of that, there is another tax regarding this point with the notary : is it true?

Many taxes. Actually the Notary also charges his legal fees, it is not a tax and has been explained already in point 3 above. It's "Frais de Notaire".

8 - As we are not living in Spain, and we dont speak spanish very well, we start to think that we will probably have to take a laywer or a sollicitor for all the "papers work"...
I have heard that usually they charge 1% of the value of the house. is that correct?

Yes we charge 1% of the value of the property plus VAT on buying property subject to a minimum legal fee of €1,300.

We charge 0,75% on selling property subject to a minimum legal fee of €1,300.

which is currently set at 16% but as from the 1st of July 2010 the Government will raise it to 18%. This can mean a substantial difference on large amounts.

I take the opportunity to offer your our conveyance legal services.

You may want to read my articles on the matter:

• Buying Property In Spain Tips Part II. Off-Plan Property – 18th April 2010

• Buying Property In Spain Tips Part I. Buying Resale: Avoiding the Pitfalls – 31st January 2010

As you happen to mention that you are selling your property in Spain, I take the opportunity to offer you our legal services. Our legal fees for our conveyance service are 0,75% of the value of the property with a minimum legal fee of €1,300 plus 16% VAT.

Our Property Conveyance Service for the sale of your property includes the following:

Conveyance for property Sale

Conveyance full package


1. Complete all necessary searches on the legal status of the property and the developer/vendor, informing the vendor of any issues discovered that may influence the decision or conditions of the sale.

2. Liaise and agree with the purchaser/s and/or lawyers in respect of terms and conditions of the sale, ensuring compliance with current laws. In the event that the vendors are non-resident in Spain, a lawyer ensures that any amount paid prior to completion is lodged safely with a resident party, preferably the vendor's lawyer's account.

3. Make preparations at the Notary Public for completion of the purchase or any further preparations required relating to the sale such as preparation of powers of attorney for individuals abroad (duly legalised and translated) which give authority to a physical person/s to act on behalf of the vendors.

4.- Assist in filing and paying all associated expenses of the sale.

5.- Confirm and obtain copy of the 3% retention withheld by the Notary at completion on behalf of the Spanish Tax Office on account of your Capital Gains Tax liability as a non-resident vendor.

Contd. below

Contd.


9- We have some debts with the community that we cannot manage to pay anymore, so we wait until we have an offer to pay it, just before the deal of course as we are aware that all debts has to be clear. Do you think this could be a problem?

No problem. The buyer will simply practice a retention on the amounts you owe at completion.

10- last question! Is there different steps in the selling deal?

Phew!

For example in France, you first sign a "promise of sell" without any money in the game. After a delay of 3 months, you go to the notary for the final signature and money story...

Is it like this in Spain? Do you have a delay between the firt step and the "real one"?

and do you have to ask for a certain amount of money for the first step or not??

We both have similar legal systems. You have these 2 or even 3 steps on buying resales. Please read our artcile on the matter for more details:

Buying Property from a Private Seller - 15th March 2000

However on the first one you have to pay a reservation deposit which is normally non-refundable unless specifically agreed otherwise in writing and amounts to €6,000. This strikes the property off the market.

Then you go on to exchanges, which is signing a Private Purchase Contract with an option to buy. Here you normally pay 10% of the value of the property. If you don't complete, you lose the 10%. If the vendor doesn't complete and the contract has been drafted professionally you can claim double the sales option which amounted to 10%, that is 20% of the property value.

The third stage is completion which is signing before the Notary Public the Title deed. This is where you pay the balance (90%).

You can in fact skip stage 2 and move on straight to completion (stage 3) if you wish. I normally don't recommend it, but it is done when time presses for whatever reason i.e. distressed asset about to get repod or in firesales.

In any case let me just clarify that on selling property you only have to pay the following expenses and taxes:

1. Lawyer's fees (0,75% of the property value plus VAT)
2. Plus ValÃ*a tax
3. Capital Gains Tax (depending on how long you've owned the property for this may be zero).

You have a nice article written by us which sums up the above neatly:

Taxes when Selling Spanish Property - 2nd May 2002

The article is outdated when it mentions CGT is 35%. CGT is now 19% for both residents and non-residents alike:

Spanish Capital Gains Tax Raise to 19% Goes Unnoticed -22nd March 2010

And I really do hope you hire me after all the above Celine, otherwise I would be very, very dissapointed with you. J/K

Yours faithfully,
Raymundo LarraÃ*n Nesbitt

Thank you so much for all your answers!!

Just hope now that we will find a buyer and of course come back to you as soon as we have an offer !!
We only hope this ! beleive me :)

Kind regards,
Céline

Pas de quoi Celine.

Kind regards,

If you are looking to make any quick house sale, it is not possible in the current environment without taking a substantial cut in your property value. Rather than taking this risk, seek the opportunities that are found with utilising a house buying company.

I'm sorry if this has been answered before, I did look but couldn't find it. We have a detached large villa for sale 16 years old, we have owned it for nearly 9 years. We are not in an urbanisation but a small residential, mains electricity, water, sewage, are all in my husbands name. We have a mortgage with the bank we have been told by our estate agents we need a Habitation Certificate so we can sell the property. Is this correct? We have done substantial work to the inside of our villa, new kitchen, bathrooms, etc., as this was internal work and didn't affect the outside of our property we were told at the time we didn't need permissions for this work, is that correct? We are non residents, living here part of the year and domiciled for tax purposes in the UK. If so how do we go about getting it in place before we get any potential buyers. Many Thanks, Janet...