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Imagine this scenario:
You decide to put your house up for sale. You look for a good real estate agent. You find the ideal buyer. You get exactly the amount you need for it to enable you to buy your dream home. You jump for joy. But…. suddenly a cold shiver runs down your spine. You realise there is a range of expenses you hadn’t taken into account and a question pops up in your mind: will you have enough left to buy your new home?
If you wish to avoid becoming the star of this story, read on. We’ll fill you in on all the expenses involved in selling your property and you’ll save yourself a nasty fright.
- Community Certificate: If your property is part of a community, get in touch with the administrator and request a document to prove that you are up to date with all the community fees and payments. You will have to present this document on the day the Title Deeds are signed.
- Property Tax: No matter when you sell the property, it’s common practice for you as the vendor to take care of the property tax for that year. However, you can try to negotiate with the buyer to have them reimburse you for the months left in the year once the property is in their name.
- Utility bills: Make sure there aren’t any water, electricity or gas bills left outstanding. If the property has debts with utility companies it will cause the new owners problems when they attempt to change the name on the supply contracts.
- Estate agency commissions: More than an expense, this is an investment because by employing an estate agency you will sell your property faster and for the best possible price. Fee amounts vary from one agent to another. Don’t choose an agency based solely on the commission they ask for. Make sure you’re employing professionals who will provide you with all the services you require.Some agencies include taking care of all the paperwork and procedures mentioned above in their fees, which will save you a lot of stress when you put your property up for sale.
Expenses after the sale
- Municipal capital gains tax: This is a local tax payable when the property is sold. It is calculated depending on the cadastral value of the land and the specific local revaluation rate.
- Personal Income Tax: This payment corresponds to the tax on the profits obtained from the transaction. There are various exceptions: people over 65, those who reinvest the profits in life annuity or those who buy another habitual residence within no more than 2 years.
- Mortgage cancellation: All the outstanding mortgage payments must be made and the loan cancelled at the Property Registry.
As you can see, there are various things that need to be kept in mind when it comes to selling property in Spain. Our advice is to find an experienced estate agency that can help you throughout the process and provide guarantees.
Would you like us to help you sell your property? Get in touch with us or come and see us at our offices and, together, the process will be much easier.
Costa Blanca Real estate agents in Calpe, Moraira, Javea, Benissa.
Contact us and make your dream come true.