In case your intention is to sell your Spanish property, Spain Solicitor may help you in any complication may arise in the process. Not only the buyer but the seller in the complex world of international property transfer really ought to have lawyer too. Some important tips you must have into account on selling your property are:
You, as the seller, should pay the capital gains tax, although in some cases it is agreed that the buyer pays it.
Another seller’s obligation is to pay the fees for cancellation of encumbrances on the property such as mortgages. As we said before, this may also be agreed between buyer and seller.
In order to safe money on tax purposes, in the past, sellers used to declare the sales price much lower than the approximate market value. But things have changed, and tax inspectors could feel that the selling price is too low, applying seller heavy penalty. In order to avoid that, one of our solicitors will ask for you at the tax office which is the market value of your property to avoid future problems.
In case you are non-resident willing to sell your property located in Spain, you should take into account you will have a 5% of the declared sale price withheld by the buyer.
This amount shall have deposited with the Spanish Tax Office, on account of the capital gains tax. Depending on your profit, once your tax liability is assessed, you will either have to pay more to the Spanish Tax Office or will get a refund of the portion deposited.
This process prevents non-resident property sellers taking the money and running.