Selling your Spanish property

Filed under : Conveyancing & Property Law, Property, Tax Planning - Inheritance

Selling your Spanish property

When you are selling property in Spain it is important to get independent legal advice. It is particularly important to ensure that your funds can be transferred back to Holland, Belgium, the UK or elsewhere having completed all the necessary documentation on leaving.

If you have been resident in Spain and are leaving you need a Certificate of Fiscal residence and this must be obtained prior to the sale. The notary will not accept that you have been tax resident here without this document and you would therefore be subject to a 3% retention on the sale price. This 3% is taken on account from non residents and any additional Capital gains tax should be paid. Capital gains taxes increased from 1st January 2015

A Spanish property law expert can calculate the sum you will receive on the day and ensure that you are not left with any ongoing liabilities after the sale. If you surrender your Spanish tax residence to take up tax residence in your home country it is very important to notify the tax authorities correctly. If you fail to do so fines could accrue without your knowledge and affect bank accounts or other assets. There is also now an obligation to inform the police if you surrender your residential status. You may for example move back to become tax resident in your home country but still have property here. If you have not provided forwarding address even old traffic or speeding fines can suddenly pop up in your bank account in Spain so it is advisable to ensure that you have the right information about selling property and surrendering your residential status.

Prevention is always better than cure and it is best to speak to experienced property lawyers and accountants particularly when you are selling property.

Tax advice for residents
It is very important for tax residents of Spain to complete the Modelo 720 if they have assets abroad worth more than 50.000€. After presenting the first Modelo 720 if the value of your assets outside of Spain increases by more than 20.000€ it will be obligatory to make a further declaration for the year of the increase. With the growing exchange of information between tax authorities it is very important to get professional advice.

For further information contact [email protected] or call 952 931781 or 952 527014