Selling Process

[tt]

Is it possible someone can give an up to date guide to the selling process regarding such things as
As a seller is there a need for a solicitor
Money to take property off the market, who does it go to, agent or seller, how is it paid
10% deposit, again who does that go to
The buyers solicitor asks questions regarding paperwork etc through the sellers agent, is that correct (after all they have to do something for their money)
What costs should the seller pay for at the notary.
We are tax resident under 65 and will use the proceeds to buy another property, our main residence but not necessarily in Spain. Am I correct in thinking there will be no retention for Capital Gains Tax.
Any advice and things to watch out for would be appreciated.
Thanks

Mike

[katy]

Is it possible someone can give an up to date guide to the selling process regarding such things as
As a seller is there a need for a solicitor
No as long as you know what you are doing and speak some Spanish.

Money to take property off the market, who does it go to, agent or seller, how is it paid
I was advised never allow an Agent to hold any monies

10% deposit, again who does that go to
It should go directly to your bank account although it is acceptable for your lawyer to hold it.
The buyers solicitor asks questions regarding paperwork etc through the sellers agent, is that correct (after all they have to do something for their money)
Yes, they should have info. copy of escritura, Nota simple etc.

What costs should the seller pay for at the notary.
I think we just paid plus valia

We are tax resident under 65 and will use the proceeds to buy another property, our main residence but not necessarily in Spain. Am I correct in thinking there will be no retention for Capital Gains Tax.
Any advice and things to watch out for would be appreciated. CorrectThanks

Mike

If you don't use a lawyer and are being paid by bank drafts they need to be checked out as valid before signing. Make sure the contract has an end completion date when the 10% is paid.

[Spud]

Hello

I always thought that if you were a tax resident you did not pay Capital Gains Tax on the profits you make on the sale as long as you bought another property in Spain for the same amount or more and that you paid tax on any amount not used. If you are over 65 you do not pay any CGT. I thought that if you took the profits and bought outside Spain then you had to pay the tax. Have I got that wrong.

[El Cid]

I thought that if you took the profits and bought outside Spain then you had to pay the tax. Have I got that wrong.

It depends who you ask. Blevins Franks advise that it is OK so long as you reinvest in the EU.

It doesn't make any difference to the retention, you definitely don't pay that. What you do is declare the sale and gain on your next tax return and tick a box that says you want to defer the tax for up to two years in case you reinvest.

After two years you fill in another declaration and say that you have reinvested it.

Sid

[Beachcomber]

If the amount of re-investment is less than the sale price of the original property you have to pay tax on the balance.

You may be asked to contribute to the cost of the notary. This is provided for by law and, I think, is 60% of the fee.

The procedure of a payment to take the property off the market is a ploy dreamt up by estate agents to get their hands on some money. There is no provision for this in law.

Make sure there is a completion date in the contract. If the purchasers are unable to meet the deadline they must pay back double the amount of the deposit.

Do not accept a personal cheque as payment. It must be a bankers draft and you must verify its validity with the bank.

A certificate of fiscal residence may not be sufficient to avoid paying the 3% retention. Notaries are not supposed to accept this certificate for this purpose. The certificate required is one which states that you are up to date with your current fiscal obligations which is something different:

https://www.agenciatributaria.gob.es/AE ... G304.shtml

They may also accept accredited copies of your tax returns for this purpose.

[gerryh]

Make sure there is a completion date in the contract. If the purchasers are unable to meet the deadline they must pay back double the amount of the deposit.

I thought it was if the SELLER couldn't/ wouldn't complete then he paid back twice the deposit.
If the PURCHASER couldn't/ wouldn't complete then he just lost his deposit?

Cheers
Gerry

[Lavanda]

Correct Gerry!

[Beachcomber]

Yes, sorry that was the wrong way round.

[tt]

Many thanks for the advice and comments.

Final question (maybe not) is about Plus Valia. As I understand it as the seller I am liable for it to be paid and a sum equal to that amount will be retained by the buyers solicitor as it is a debt on the property but will not become liable until after completion of the sale.

While I have no doubt the solicitor acting for the buyer is an upright member of society how can I obtain the amount of Plus Valia that is to be paid so that at the notary no inflated retention is asked for.

I would be interested to hear of others experiences and who in the town hall would have the information I require.

Thanks again.

[Beachcomber]

In the first instance try this online calculator:

http://www.foro-ciudad.com/plusvalia-municipal.php

It is not infallible but it should give you a good indication of the amount.

Otherwise you will need to contact your local town hall giving them the same information that is required in the online calculator

Once the plus-valía has been paid you will be entitled to the seller's copy and any difference should be refunded to you.

[tt]

Beach, thanks for that link, this is what it has shown. What does it mean ??????????

Nº de Años:
8
Porcentaje Anual:
3%/Año
Incremento valor (%):
24%
Vista aerea
Base Imponible:
6.30288€
Reduccion Art. 107.3:
0%
Rev. Catastral sin modificacion ultimos 5 años
Vista aerea
Tipo de gravamen:
27%
Cuota íntegra:
1.7017776€
Cuota liquida:
1.7017776€


Thanks

[Beachcomber]

It looks as though it is calculating the plus-valía at €1.701,78.

When you enter the valor catastral do not enter the thousands separator just put a comma between the euros and the céntimos then take the result to two decimal places.

You can check the result with a calculator. Take the valor catastral, multiply it by 24% and then take 27% of the result.

You should double check with the web site of your own Town Hall. It may have its own calculator or, if not, the Diputación de Sevilla.

[tt]

Sorry to be a pain Beach
The valor Catastral is shown as 26.262,38/ VC Med. 36.019,16

Complicated

[Beachcomber]

If we take the figure shown as the valor catastral to be the base figure the calculations are as follows:

26.262,38 x 24% (8 years at 3%) = 6.302,97
6.302,97 x 27% = 1.701,80

The discrepancy of 2 céntimos will be caused by the fact that I have been working to two decimal places.

If they use the VC Med as the base value the figures will be:

36.019,16 x 24% = 8.644,60
8.644,60 x 27% = 2.334,04

Remember that the plus valía only applies to the increase in the value of the land. It does not apply to any building thereon so the base figure should be the valor catastral of the land only. It is calculated by taking the annual percentage increase and multiplying by the number of years the property has been owned. The resultant percentage is then applied to the valor catastral (of the land) and then the multiplied by the appropriate percentage (in this case 27%).

Things can get a little complicated in the case of a multi-storey apartment block as the valor catastral of the land upon which the apartment stands has to be divided by the number of storeys and the coefficients of occupation.

The other factors involved in the calculation are ascertained by the information provided in respect of the drop down boxes for the province and municipality.

Also bear in mind that this is a generic calculator and a much more accurate result will be obtained by using the Town Hall or Diputación calculator if they are available.

I don't know much about Seville province but if you let me know the name of your municipality I will see if I can find a calculator specific to it. PM it to me if you prefer.

[tt]

Excellent, thank you for taking the time to share your knowledge.

Thanks again.

[kexon]

Whats all this then, good news.
You know who I am.

[Marina]

What you do is declare the sale and gain on your next tax return and tick a box that says you want to defer the tax for up to two years in case you reinvest.

After two years you fill in another declaration and say that you have reinvested it.

This sounds wonderfully simple. Is that really all there is to it? Do you not need to prove in any way that you have reinvested?

[Calahonda52]

Just looking at this, using the link provided above:

Is it the Valor Catastral [VC] at the date of purchase or date of sale that is input?

The property is in Malaga/Mijas and the VC in 2004 was 31000 and in 2013 is 71000
Its a 3 storey block with 8 on each floor

Using the 2013 VC I get a PV of 2012,58

I tried putting in the UTM into what I think was the Mijas Town Hall web site but it did not recognise the UTM
Thanks