SELLING – SUN AVENUE HOMES

How we can help you to sell your property?

– We have hundred of customers looking for properties to buy in Costa del Sol area.

– We are a member of the main agency network in Costa del Sol and share your property on 800 local and international real estate websites.

– We are social media marketing experts.

– We speak languages.

– We provide professional photos.

– We are professional communicators.

– We will find the best buyer.

How do you start the process of selling a property in Costa del Sol?

Find the right price.

Every property has a market price determined by the forces of demand and supply. However, in practice, there are a number of external factors that can add or take from a property’s value.

Use a few simple hacks to calculate the market value by: 1. looking at what similar houses in the neighbourhood have sold for and 2. use the scientific measures that a bank uses as a starting point like location, age, market, condition, environment, etc.

Your pricing strategy will depend very much on why you are selling your property. Every seller is different and sell for a different reason. If you really want to sell, you need price your property at the right price.

How you can add value to your sales price?

The simplest of actions can really make the difference to sell a property with the higher price.

– The fresh paint

– Professional cleaning

– Make it smell good.

– Add simple accessories like plants, small decoration, cushions, candles, etc.

– Enhance the outdoor area like entrance, terrace, garden.

Prepare documentation

You need following documents:

– nota simple

– escritura

– First occupancy licence

– energy performance certificate

– proof that IBI is paid, community fees and utility fees are paid and there are no mortgage debt.

If you have any questions, contact us or your lawyer.

Costs about selling your property.

Here is a list of costs to consider:

– agency fee 5% plus VAT

– legal fees 1% plus VAT

– plusvalia

The Plusvalia is a land tax. It is based on the rising value of the land which your property occupies, over the amount of time you have owned it. The Plusvalia is calculated on each “full year” of ownership. When selling your property it is important to check the exact date of purchase and try and sell before the anniversary date. If you sell 1 day after the anniversary date you will have incurred 1 full year more of plusvalía. Worked example:

Purchase Date: 21th May 2010

Date of sale: 20th May 2021 – nº of full years of ownership = 10 years

Date of sale: 21th May 2021 – nº of full years of ownership = 11 years

The difference of 1 day can amount to a substantial increase in the payment owed.

The plusvalia calculation is capped at 20 yrs of ownership.

The Plusvalia must be filed at the local patronato office within 30 days of the completion of your sale. The tax bill can take 6 months to 1 year to arrive. Your lawyer is able to give you an estimate sum for the plusvália tax.

– capital gain tax

The Capital Gain is the net profit you make from the sale of your property.

Net Profit = Real Sales Price – Real Purchase Price

The real sales price is the price that you sell for and will appear on a new escritura. From this you can deduct selling costs such as agent fees, legal fees, plusvalía. Some significant property improvement costs are also deductible but you will need to provide invoices with VAT to prove that these costs were paid. T
The real purchase price is the price that you bought the property for and is recorded on your escritura. To this, you can add key costs involved such as notary costs, legal costs, transfer tax, IVA etc.

If you are Non-Resident

CGT is set at a flat rate of 19% of your profits for non-Spanish residents who are members of the European Union and 24% for citizens outside the EU.

Spanish Residents

You will be considered a Spanish fiscal resident if you live in Spain for over 6 months or anything more than 183 days. If you are a tax resident in Spain, the calculation is more complicated and works on an upward sliding scale ranging from 19% – 23% depending on the amount of net profit.

There are some CGT exemptions:

1. Primary Residence – Main Home

In order to constitute the main home, you have to have lived in it for 3 consecutive years.

If you sell your main home and then re-invest that money directly into another primary residence, you can be free of any Capital Tax Payments. This re-investment must take place within a certain timeframe – either 2 years before or two years after you sell your main home. Once you have your main home, you must live in it for a minimum of a year and cannot sell it for at least three years. If you do, you will have to pay the taxman back.

2. Residents who are over 65

If you are over 65 years, you do not need to pay CGT if you sell your primary residence, regardless of whether you choose to re-invest it in another primary residence. In order to qualify for this, you must have lived in the home for at least 3 years before you sell the property.

3. Properties bought before 1995

To qualify for this, the property must be sold for less than 400,000 Euros.

If you purchased your property prior to 1995, you will also be able to pay a reduced rate of tax. This reduced rate of 11% is payable made on any gain made prior to 20th January 2006. You will need to pay the full rate of tax on any gain made in the years following that.