If you are thinking about selling your house in Mallorca, MALLORCA AGENT – Luxury real estate will give you an overview to go through the process.
The good news is, that careful preparation and smart decisions on your part can help speed up the process and help ensure a smooth transaction with no suprises.
Youre not obliged to use an estate agent, but it is highly recommend as estate agents like MALLORCA AGENT – Luxury real estate have a huge network of pre-registered clients, international marketing campaines are know the real estate market in Mallorca very well. They will give you a realistic valuation of your property and take care about the whole sales process so you even don‘t need to be on Mallorca.
A good starting point is to ask for recommendations from people you know who have used an estate agent recently. Look for someone with experience in the real estate business in Mallorca and a good knowledge about the local market and the specific areas.
Estate agents in Mallorca normally charge fees of 6% (plus IVA). The fee has to be paied by the seller.
There’s nothing to stop you using more than one estate agent, but if you go with more than one estate agent, make sure they all put the property on the market at the same price to avoid confusing buyers. Sometimes it makes sence to go with one professional and well connected agency like MALLORCA AGENT – Luxury real estate who is offer special services for excluisve properties and is cooperation with all the other agents in Mallorca.
To not hesitate to get in touch with us to know more about our exclusive listing service (ELS).
The deed or title deed to the property
It is the most important document as it confirms that you are the owner.
Proof of cancellation of the mortgage
If the loan payment is still in effect, the cancellation and expenses must be made so that the new buyer can register the property in his or her name. This operation can be done at
the same time as the registration of the sale at the notary’s office. If it has been amortised, the document proving it is sufficient.
Spanish Property Tax (IBI)
It is a certificate that proves that you are up to date with your payment.
The seller has the right to pass on to the buyer the portion proportional to the time that each of the parties has owned the house during the year in which the tax accrues.
Proof of payment of the Community fees
The manager / managing company of the building will give you a certificate of payment of the communal fees one day before the notary.
The latest paid bills
Electricity, gas, water, etc. are important for the new owner to change everything into his name.
The energy certificate
An energy performance certificate is mandatory since 2013. The seller must provide the energy performance certificate or a copy thereof, which shall be given to the buyer at the notary
Cédula de habitabilidad
This document needs to be handed over to the buyer at the notary. It will be checked by the buyers side before the notary if the property in its current status has no illegal parts and might be renewed by you, the seller.
Costs and fees
- Estate agency commission (typically 6%)
- For an energy performance certificate (between €150-€500)
- Capital gains tax if you are selling for more than you the price you originally paid (see infos below)
- Plusvalía tax (see infos below)
- Lawyer (normally 1% of the purchase price)
Also please don’t forget that if you are transferring the money from the sale back to the UK or to another country which is not using EURO, they will charge you an exchange rate.
Capital gains tax
Capital gains tax is a tax on the profit you’ve made on the property.
It is the sale price minus whatever you paid for it, such as the estate agent’s fees, notary, lawyer, renovation costs, etc. They can be deducted before the calculation is made. There’s also an annual allowance which is calculated by the tax office. The CGT rate is 19% for non-residents.
This is a local land tax payable on the increase in the value of the land, excluding buildings, when selling Spanish property. It applies to residents and non-residents alike, varying according to the size of the local population and length of ownership.
The seller is usually liable for paying the plusvalía which is a relatively modest amount of a few hundred euros.
Non-residents and taxes
If you’re not an official resident of Spain, the buyer is obliged to forward 3% of the purchase price to the tax authorities on completion of the sale. This will be offset against any taxes you end up owing in respect of capital gains tax. You need to pay any balance owning within 30 days of the sale, or you can apply for a refund where appropriate.
If you have any questions about the sales process, please do not hesitate to contact MALLORCA AGENT – Luxury real estate. We also can advice you to our professional cooperation partners from our big network in Mallorca.