Navigating Your Property Sale in Paradise

Selling your property on the Costa del Sol can be a very rewarding experience, but a clear understanding of the process is crucial for a successful and stress-free transaction. This guide breaks down the entire selling journey into clear, manageable stages, ensuring you are well-prepared from the initial valuation to the final completion. Let's walk through the steps to successfully selling your Spanish home.

The Selling Process: Step by Step

Step 1: Get a Valuation & Choose Your Agent

Start by getting a realistic market valuation for your property. Choose a reputable real estate agent with a strong track record in your area. They will advise on pricing, marketing strategy, and handle viewings. It's also wise to appoint a lawyer at this stage to represent you.

Step 2: Prepare Your Documentation

Your lawyer will help you gather all necessary documents. This includes your title deed (Escritura), latest IBI (council tax) receipts, utility bills, community fee statements, and a valid Energy Performance Certificate (EPC), which is legally required to market the property.

Step 3: Marketing & Viewings

Prepare your home to look its best. Your agent will arrange for professional photos and list the property on various portals. Be flexible with viewing arrangements to accommodate potential buyers. A clean, well-presented home is crucial for a quick sale.

Step 4: Receive an Offer & Reservation Agreement

When you receive an offer you are happy with, the buyer will sign a Reservation Agreement (Contrato de Reserva) and pay a reservation deposit to take the property off the market. This agreement outlines the basic terms of the sale.

Step 5: Private Purchase Contract (Contrato de Arras)

After the buyer's lawyer completes their due diligence, you will both sign the Private Purchase Contract. At this stage, the buyer pays the full 10% deposit. This is a legally binding contract, and if the buyer pulls out, they lose their deposit. If you (the seller) pull out, you typically have to pay back double the deposit.

Step 6: Prepare for Completion

Your lawyer will prepare all the final paperwork for the notary. This includes calculating the taxes you will need to pay, such as Capital Gains Tax and the local Plusvalía tax. They will also coordinate with the buyer's bank if there is an existing mortgage to be cancelled.

Step 7: Completion at the Notary (Escritura)

On the agreed completion day, you (or your lawyer with Power of Attorney) will meet the buyer at the notary. You will sign the final Title Deed (Escritura de Compraventa), receive the final payment via a banker's draft, and hand over the keys.

Step 8: Post-Sale Formalities

Your legal representative will handle the payment of your taxes (Capital Gains and Plusvalía) from the proceeds of the sale. They will also ensure that all utility contracts are transferred out of your name and into the new owner's name, finalising the process.

Frequently Asked Questions (FAQ)

The two main taxes are Capital Gains Tax (CGT), which is a tax on the profit you've made (currently 19-28%), and the Plusvalía Municipal, which is a local tax based on the increase in the land's value since you bought it.

The EPC (Certificado de Eficiencia Energética) rates your property's energy efficiency from A (best) to G (worst). It is a legal requirement to have a valid EPC before you can market your property for sale or rent in Spain.

Agent commissions on the Costa del Sol are typically between 5% and 7% of the sale price, plus IVA (VAT). This is usually paid by the seller from the proceeds of the sale at the notary.

No. Just as with buying, you can grant your lawyer a Power of Attorney (Poder Notarial). This allows them to represent you and sign the final deeds on your behalf, which is a very convenient option for non-resident sellers.