Selling

Our team at Mojacar Homes and Villas have years of experience in property management covering all aspects of rentals, sales and maintenance. We are a family run business with a large team of knowledgeable and experienced staff. 

Mojacar Homes & Villas is a sister company to Mojacar Home Improvements, a fully legal and insured Spanish registered company with a long history of satisfied and returning customers.

Our mission is to make our clients feel secure and take the worry out of the selling process. We know that things in Spain can be difficult and stressful at times what with the complicated paperwork and language barrier, therefore our multi lingual team can help with gaining the necessary paperwork and dealing with government bodies on your behalf to ensure a smooth process. We always go out of our way to help our clients, supporting them in all aspects however trivial it may seem. We pride ourselves in our attention to detail and our loyalty to our clients.

What also makes us unique and individual to other agents in the area is that we offer sellers and buyers support for either preparing their home for sale or work once it has been purchased. As estate agents we know that first impressions are the most important and having improvements done to your property could be the difference between more income and help sway a client in their decision over choosing to buy another property. From a brand-new kitchen to just a fresh lick of paint can help to generate more interest and excitement when we take clients to visit the property for the first time. External areas are just as important as internal; therefore, an unkempt garden or run-down pool could also be damaging to your income. Even having a de-clutter could make all the difference. Our knowledgeable design team and our skilled tradesmen, gardeners, and pool team can help you achieve the quick and profitable sale that you dream of.

We focus heavily on targeted advertising to ensure that your property gets as much visibility as possible to ensure a quick and straightforward sale. We invest in various portals such as Rightmove and Kyero, local magazines and the radio to ensure maximum coverage.

The following information will help you to understand the taxes and costs that are associated with selling and what we require from you to list your property. The rest is up to us and our legal team, who can help you in all aspects of selling your home.

To comply with the Andalucía law Decreto 218/2005 we would require the following paperwork:

  • Copy of title deeds (Escritura)
  • Nota Simple
  • Receipts for local tax (IBI) paid to date including to end of year
  • Details of community statutes and yearly costs (if applicable)
  • EPC (if older than 10 years a new one must be purchased – further details below)
  • Inventory (items that will be included in the sale)
  • Copy of residencia/NIE/
  • Copy of passport
  • Licence of first occupation
  • Plano Catastral (land registry plan)
  • Signed letter authorising agent to advertise for selling

If you require help in gaining any of this paperwork, we can assist you.

ADDITIONAL COSTS

121€ –  (approx.) price includes property assessment, registration taxes, EPC registration and EPC + IVA (delivered within 48 hours)

Only needed if the property is older than 10 years old

If applicable, the 3% retention is a tax which is payable when a non – resident sells a property in Spain. The buyer of the property is required to retain 3% of the purchase price and deliver it to the tax office. The non-resident seller is able to make a claim to have the 3% returned to them.

(if profit is to be made on the sale) The capital gains tax is the tax that is paid on the profits that you obtain once you sell any kind of asset like a property or land, or from an investment in the Spanish territory. Whenever the sale value is greater than the price you paid for the investment/asset for its acquisition, capital gains tax will be paid on that difference, the profit.

Capital Gains tax for Spanish residents

If you considered a resident, the capital gains tax to be paid will be: 

  • 19% for the first 6.000€ obtained as a profit
  • From 6.001€ to 50.000€, the tax percentage is 21%
  • From 50.000€ onwards, a 23% tax percentage

The amount of tax you would pay would depend in this instance whether you are a resident in Spain or not.

Capital gains tax is based on the purchase price as written on the Title Deed including VAT, Land Registry fees, notary fees, transmission tax, and legal fees. These amounts are deducted from the final sale price, less costs incurred during the sale including legal fees to arrive at the net profit and amount liable for capital gains tax

Non-residents in Spain from outside the European Union will pay a fix 24% rate for their capital gainsNevertheless, if they are from any other European country, from Norway or Island, that rate is reduced to just 19%. 

But unlike in the resident case, there is just one possible case here. Non-residents can enjoy a capital gains tax exemption provided that they are legally living in any other European Union country that has a tax agreement with Spain. If that condition holds, they will be able to also enjoy the main home exemption too.

Main Home Exception –

If the amount of money that you earn from the sale of the property will be reinvested into the purchase of a new one, and you will use this new house or flat as your new home, you don’t need to pay capital gains tax. 

Hence, what you need to consider here is that the property you are selling was your habitual residence, and the one you are acquiring will be too. 

Nevertheless, there are some requirements here. It is crucial that this property is located inside the European Union and not outside for the exemption to be applicable.

Selling your property if you are older than 65

If you are 65 years old or over, it does not matter if the amount of money you get from selling the property will be reinvested into your new home or not. You won’t need to pay this tax. 

Nevertheless, you must bear in mind that there is a crucial condition you must meet in order to benefit from the 65-year-old exemption. And that is that the property you are selling must be your habitual residence. In order words, a minimum of 3 years lived in the property before selling it is required to avoid paying capital gains tax. 

Reduction on assets bought before 1995

The bonification will be only applicable to the gains produced until January of 2006. Any increase in the asset value afterwards will not include the tax reduction and will be taxed at the normal rate. In order for the property to enjoy this bonification, it must have been purchased for more than 400.000€.

Our legal team can help offset the amount from the Capital Gains Tax if you have IVA receipts to back up any refurbishment cost

The Plusvalia is a local (municipal) tax charged by the town hall on properties when they are sold. It is calculated on the rateable value of the property and the number of years that have passed since the property last changed hands. Plusvalía is due to the town hall thirty days from the date of sale or six months from the date of death in the case of inheritance. It’s important to distinguish that the Plusvalía tax is calculated and charged on land value only, not the property on the land.

If you choose to have legal assistance to help you sell your property, this is something we can arrange for you and they will offer you a free initial consultation to examine your paperwork in preparation for listing your property with us.

ONLY 2% of selling price if exclusive

If there is a mortgage charge on the property that you want to sell, even if you paid it off years ago, you need to make sure that the charge has been lifted from the Property Registry. This involves Notary and Land Registry fees.

ITEMS INCLUDED IN THE SALE

We would require an inventory to post with your listing if you are including anything in the sale. I.e. furniture, appliances etc. This can add to the sale of your property and attract first time buyers as they would have to buy less for their initial first move.

WHAT NEXT?

  1. Once we have received an offer that has been agreed by both parties, we would ask for a 3,000€ reservation payment to remove the property from sale and decline any further viewings
  2. We would then ask our or the buyers legal team to proceed with drawing up the private purchase contract, at this stage when all has been agreed, we would ask for the 10% payment to be made (minus the 3000€ reservation payment)
  3. Upon completion and signing in the notary the final balance will be paid and exchange of keys will be made
  4. The legal team will then ensure that all bills will then be transferred into the buyer’s name and tie up any loose ends.
If this all seems a bit daunting, don´t worry.
We will help you every step of the way.

 

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