Necessary documents

• Notarial deed of ownership (Escritura)
• Extract from the land register (Nota Registral)
• Building Permit(s) (Licencia de Obra) and Acceptances (Final de Obra)
• Proof of payment of property tax (IBI) and refuse fee (Basura)
• Certificate of Habitability (Cédula de Habitabilidad)
• If applicable: utility contracts water (alternatively well permits), electricity, telephone, internet
• Energy Certificate (CEE)
• Building plans, floor plans
• Inventory list, if defined furnishings are also being sold
  It is advisable to prepare a photo inventory list for this purpose in order to avoid misunderstandings.
  
  

Taxes when selling a property

• Profit taxation for non-residents
  • Area of application: If the seller is not resident in Spain for tax purposes, the buyer must withhold 3% of the purchase price as an advance payment on the seller's income tax and pay it to the tax authorities. This is usually done right at the notarization of the purchase contract and is done there by the buyer's lawyer or tax advisor. The purpose of this legal regulation is simply that the Spanish tax office tries to avoid that non-residents sell their property and leave Spain without paying the legal taxes. If the sum of this 3% is higher than the sales profit of the seller, he is entitled to a refund from the tax office, if the sales profit is higher, the difference has to be paid afterwards. A profit tax return must be filed within 4 months after the notarial sale date.
  • Who? Non-residents
  • Amount: 19 % of the sale profit (difference between sale proceeds and acquisition costs; crediting of investments made and costs borne possible)
• Profit taxation for residents
  • Area of application: If the seller is a resident, no down payment by the buyer is necessary.
  • Who? Residents
  • Amount: 19 % - 23 % of the sales profit (difference between sales proceeds and acquisition costs; crediting of investments made and costs borne possible)
    up to € 6,000 > 19 %
    from € 6,000 to € 24,000 > 21 %
    from € 24,000 > 23 % (maximum tax on the remaining profit)
  • Residents are exempt from tax if they sell their main residence and acquire a new main residence. They can be exempted from paying profit tax within two years before and after the sale (only main residence, not second residence).
  • The tax return and taxation of the profit is made in the income tax return of the year of the sale, which must be filed by June 30 of the following year.
• Profit taxation for companies
  • Field of application: If the seller is a Spanish company (e.g. an S.L.), profit taxation is applicable to the difference between the sales proceeds and the book value.
  • Who. Legal entities, such as an S.L.
  • Amount: 25% corporate income tax
• Value Added Tax (Plusvalía Municipal)
  • This tax is based on the cadastral value (Valor Catastral) during the ownership period.
  • Who. All owners, i.e. residents, non-residents and companies.