There are any number of reasons why you might want to sell a property in Spain: it may be that you’d like to move back to the UK or put your Spanish holiday home on the market. You might have decided that you’d like to sell a Spanish property that you have recently inherited.
No matter what your reasons or circumstances might be, we can help you get the best value for money when you repatriate funds home upon selling a house in Spain. Transferring Euros to pounds sterling is easy when you partner with Moneycorp: we offer international payments in more than 120 currencies to 190 countries, and it is quick, easy and free to sign up for a Moneycorp account.
How to sell a house in Spain
Selling houses in Spain tends to take two to three months. You’ll need to do the following:
- Clean and refurbish your property. If necessary, hire professional cleaners to bring out the best in your property. First impressions matter, and a clean, tidy home will help attract buyers.
- Find a good estate agent. A local estate agent can show buyers around your property and provide you with local knowledge that will enable you to secure a good price.
- Hire a solicitor. Find a Spanish property solicitor with a good understanding of the local conveyancing system.
- Select a notary. Notaries are public officials who play a crucial role in Spanish property sales. They witness the signing of contracts, manage the paperwork, and ensure that all of the legal requirements have been met. Your lawyer can help you find a notary.
- Prepare the necessary documentation. Provide your estate agent and solicitor with a series of documents. These documents include the title deeds to the property, the cadastral certificate, an energy performance certificate and the last three months of utility bills. You will also need to have your identity document (ID, CIF or NIE) on hand.
- Contact a currency specialist. Even minor fluctuations in foreign exchange rates can make a substantial difference to the money that you receive. Working alongside a foreign currency specialist like Moneycorp will enable you to secure a more competitive exchange rate than using a bank, helping you save thousands of pounds.
- Accept an offer. Once a buyer has expressed an interest in your property, they will make you an offer. They’ll present you with a contract that outlines the terms of the sale; you can negotiate the terms if you wish to do so.
- Settle the contract. Having finalised the contract, you’ll need to exchange contracts and sign with the buyer. The buyer will normally pay a deposit of 10%, held in escrow until the sale has been completed.
- Complete the sale. Once the keys have been handed over and your belongings have been removed, the buyer will receive the title deed to your property, and you will receive money from the sale.
Do I have to pay capital gains tax on overseas property?
As a British citizen, any Spanish property that you dispose of will be subject to Capital Gains Tax (CGT). Non-residents from the EU/EEA pay CGT at a flat rate of 19% on the profits of the sale, whilst those from outside the EU/EEA pay 24%.
If you are a resident of Spain, on the other hand, you are liable to pay between 19%-23%:
- 19% on the first €6.000
- 21% from €6.000 - €50.000
- 23% from €50.000+
It’s worth checking your tax liabilities and obligations with a legal professional before you begin the process of moving back to the UK from Spain.
Additional costs of selling a house in Spain
If there are any outstanding mortgage payments, you will be required to settle the unpaid balance and provide the bank with a copy of the title deed. You will also need to settle the fees that you owe to your estate agent and lawyer; the fees charged by real estate agents vary between 3-10%. The notary will also provide you with an invoice for his or her services.
There are also local taxes that you may be liable to pay, one of which is the plusvalia municipal, or municipal capital gains tax. Note that you will only need to pay this tax if you are a tax resident of Spain; if you are not a resident, the purchaser will need to pay this on your behalf. You will be required to pay for an Energy Efficiency Certificate, the average cost of which is €165.
How to transfer euros home from your Spanish property sale
The process of selling a property abroad often takes several months to complete, and so you might be worried about currency fluctuations that occur before you receive the final payment. The good news is that Moneycorp offers forward contracts that enable you to secure a current exchange rate for up to two years. This means that you’ll receive the same rate, regardless of any movements in the market, and you won’t have to worry about the money that you are due to receive losing value by the time that the payment has been made.
You can also enjoy competitive rates and low transfer fees on your payments with a Moneycorp account, enabling you to bring more of your money home with you. You can exchange euros to pounds from your online account, with 24/7 access to your funds and the ability to target a desired exchange rate before you make your payment. This sets us apart from high street banks, which often offer poor exchange rates and charge costly transfer fees.