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Read on for more information and requirements as a property owner looking to sell in Spain. So that we can market your property in accordance to the Royal Decree 218/2005 please take a look at the links below for all necessary paperwork depending on your type of property:
House Insurance with MGS
Capital Gains Tax: CGT is set at 18% of your profits. However, if you are non-resident, on completion 3% of your inital sales price will be retained as a partial retention for your CGT liability. Please note, it is the Buyers responsibility to retain this 3% and pay it to the tax authorities on your behalf. If your profit is lower than this amount you can claim back the difference. If it is higher, you should pay the balance to the Spanish taxman within 2 to 3 months after the sale.
Plus Valia: The Plus Valia is a tax based on the incremental value of the land which your property occupies over the amount of time you have owned it. Typically for small apartments this can be as low as 50€ per year of ownership, whereas for villas it will be significantly higher. The Plus Valia must be paid within 30 days of the the completion of your sale.
Mortgage Cancelation Fees: (if applicable): If you have an existing mortgage on your property you will need to pay about 1.000€ to ensure the mortgage is officially cancelled at the Notary and Registy Office. Often this amount is retained by the Buyer for them to ensure the fees are correctly administered. You may also have some cancellation charges from the bank so make sure you check.
Legal Fees: If you choose to use a Lawyer to help you when you sell, the conveyancing fees will be about 1% plus IVA / VAT.
Ensure all your community fees, IBI (rates) and utility bills are up to date. If any of these bills are not up-to-date the Buyer may insist on retaining any outstanding amounts due from the sales price.
Real Estate Agents Fees: If you have sold your property through an agent, ensure you take their fees into account. Typically these fees will be 3% plus IVA (minimum of 3,000€ + IVA) for RMB Spain clients. Always consult your Lawyer or Tax Advisor before selling your property, so you know exactly where you stand tax-wise. We can also offer you assistance with Money Exchange to maximise your returns.
Holiday Rentals Andalucia
Holiday Rental Law for Properties in Andalucia - Obligation to Register your Property as from the 11th of May 2016
Please click here for more information and requirements regarding the Consumer's Royal Decree of 218/2005: RENTAL Property
What is a Security Deposit? Rental Deposits, cover against damage.
Upon signing a rental agreement (subject to LAU), according to the Urban Lease Act, the tenant must present a cash amount designated as a deposit, whose purpose is to guarantee the tenant’s compliance with contractual obligations.
The security deposit (equivalent to one or two month's rent) is usually held by the Landlord or the Rental Agent but can also be deposited in the corresponding entity in each Autonomous Region until contract termination. In Andalucia all rental deposits taken for rental properties should be held by the Junta de Andalucia. The amount should be lodged within a month from the start date of the rental contract.
With a digital certificate the form can be presented online or to the offices of AVRA Rental Deposits.
On the day the contract terminates, the Landlord or Agent will need to collect the keys and check that the residence is in normal conditions, in other words, the same conditions in which it was handed over to the tenant plus normal wear and tear. They will also need to verify that the tenant is up to date with all payments. Once this formality has been carried out and the results are deemed satisfactory, the owner will return the security deposit in full.
If the owner had to use a part of the deposit to settle a pending payment, the remaining amount will be returned. The deposit must be returned within a maximum of one month from the date the agreement was terminated or should be returned promptly to the tenant in a timely fashion (with the mutual understanding that some bills may take longer to be issued) providing the tenant has given proper notice and there was no damage to the property or outstanding bills.
If it is not returned during this time period, the tenant may demand legal interest on the sum. It is important to point out that the security deposit is not meant for paying the last month’s rent. Rather it is to be used to compensate imperfections, pending bills or service and utility consumption pending payment.
Information links that might interest you: