Sotogrande Property Seller’s Guide

Important: The information on this page is only for general advice. No rights can be claimed. We highly recommend you ask your lawyer for the exact costs of your particular sale.

When you decide to sell your property, you simply need to call us. We will arrange to come to your home, where we will take pictures of your property and talk about the sales conditions. Although, as a Spanish real estate, we are very experienced and will give you an honest opinion about the value of your property we would be happy for you to get an independent quote from a Surveyor.

This way you make sure to receive a realistic sales price for your property. The Surveyor normally charges between 200€ and 400 €, depending on the size of the property for sale in order to list your property we would require:

• A copy of the original purchase deed.
• A copy of the last IBI (Impuestos sobre Bienes Inmobilarios) receipt.
• A copy of the last community fee receipt.
• A copy of the energy certificate.
• A signed commission agreement.

Our fee for selling your property is 5%, plus VAT, of the final sales price.

In order to sell your property quickly you need to help us, by agreeing to set an attractive price, and by keeping your property very presentable at all times during the sales period. When it comes to potential buyers a clean car always sells easier and better than a dirty car!!

Once we have found the Buyer for your property we will negotiate and agree to the sales conditions and price. The Buyer now has to provide a deposit of 10% (if not otherwise agreed). The timing of the sale and signing the title deeds depends now on the Buyer, as he might apply for a mortgage. If he does, the Bank will send a Surveyor to evaluate the property. It will most probably take 2 months minimum to sign at the Notary.

In the meantime, make sure you have all outstanding bills paid on the property, such as Community fees, Property tax, Electricity bills or water bills. You will also need to pay the” Plus Valía” (Municipality fees) on the property, which can be as little as a few hundred Euros or it can be thousands, depending of how long you have owned the property, how big it is… The best is to consult with your Tax Consultant.

Capital gains tax will need to be paid. The amount will depend on the ownership structure of the property, i.e owned by an individual or a company. We recommend you consult with your Solicitor on all these matters.

Selling Costs

In addition to your lawyer’s fees there are the following costs to be considered:

Notary Fees

Whilst Spanish law states that the majority of these fees are payable by the vendor it is not uncommon for these costs to be negotiated to be paid by the purchaser. The fees are based on a scale of the value of the sale and the number of pages of the “escritura de compraventa”.

Plus Valia – Municipal Tax

This is a tax charged by the local municipal government: The tax amount is calculated with a formula based on the “valor catastral” – the value of the land (not the building) of the property and the number of years that land has been owned by the vendor. Payment of this tax is the responsibility of the vendor but if it is unpaid then that liability will pass to the new owner. Therefore, it is normally agreed, when the vendor is a non-resident, that the purchaser retains this amount at the time of completion of the sale.

Capital Gains Tax

In 2007 this tax was simplified to be equal to all vendors both resident and non-resident, unless the vendor is a trading corporate entity or a resident person over the age of 65. The present level of capital gains tax is set at 21%. In the case of non-residents, the purchaser is obliged by law to retain 3% of the sales price and pay it directly to the tax authority (Tesoro Público) as credit for the pending tax. In the case that the 3% is greater than the actual capital gains tax payable, the vendor can reclaim this amount.

Commission Rates

Estate agents in Southern Spain will usually charge between 5% and 7% sales commission, plus 21% V.A.T. Noll & Partners SL charges a flat rate of 5%, plus IVA @21%.

Showing Your Property… We want to appeal to the 5 senses!

Showing Your Property

If we can sub-consciously appeal to the buyer’s 5 senses we stand a better chance of selling your property.

Sight – Day time open all curtains, so sunlight enters property and if it is evening or night turn on all lights to better illuminate the property and try and have the rooms free from clutter

Sound – Have some light relaxing music playing in the background if possible.

Touch – Have the home as clean as possible & allow the buyers to roam freely through the house un-interrupted.

Smell – Have some form of Air Freshener.

Taste – Have some chocolate or sweets to offer.

The Dog – Keep away. Pet lovers will be distracted by your pet, and for those who do not have pets it may be bothersome.

Children should be seen not heard – This is a new experience for the kids. Naturally, they are excited, but they will disturb the professional flow of the showing. Ask them to remain away from the agent and buyers, to go outside or watch TV.

When the doorbell rings – Answer the door as you would for any welcomed guest. The agent will take care of introductions. If there is a situation that needs mentioning, perhaps a sick child in the second bedroom, do so now. You should ask the agent to begin showing the home and then you should excuse yourself.

Low Profile – Discretely remain away from the buyers. As helpful as you wish to be, your presence will be intimidating. They need to be able to discuss the home freely with one another. The agent needs to learn from the buyers how they are responding to your home. Your presence can limit that free communication.

Talking with buyers – If you are asked any questions about the area, schools, etc., answer pleasantly, and avoid becoming engaged in a conversation. Questions regarding terms of sale should be referred to the agent.

Disclaimer: The content of this document is provided for guidance only, and while every effort has been made by Noll and Partners SL to ensure the accuracy of the information and translations contained, no liability can be accepted for any errors omissions and inaccuracies, or for the opinions expressed herein.