Selling property in Spain: A complete guide

Own a property in Spain and think of selling and moving back to the UK? Perhaps you want to free up some cash from an underused holiday home, or want to strike at just the right time to sell an investment property. Or maybe you live in Spain and are just looking to move to a different area.

Whichever is the case, this guide is for you. Below, we’ll run through everything you need to know about selling property in Spain. This includes details of the selling process, fees, taxes, timescales, legal requirements and much more.

Plus, if you want a low-cost, transparent way to transfer the proceeds of your property sale back to the UK or manage your money abroad, check out the Wise account from the money services provider Wise.

It lets you spend, hold and convert money in 40+ currencies and make secure transfers to 160+ countries for low fees* and great mid-market exchange rates. Every transfer is trackable and you’ll get dedicated support when making large amount transfers.

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Is now a good time to sell in Spain?¹

Whether or not it’s the right time to sell your Spanish property will depend on your circumstances. This includes how much you originally paid for the property and how much prices have risen in the region.

Generally in Spain, the property market has experienced a slight slowdown in 2023. Home sales have fallen 9% by December 2023. However, the number of foreigners buying houses in Spain is on the rise.

Property prices in Spain continue to grow. Last year, there was a 4.5% price increase, which outperforms the eurozone average. It's expected that they will grow 3% this year.

If you have a new-build home, you'll also be interested to know that their price growth is much higher than that of existing homes. However, this is expected to level off a bit this year.

The process of selling a property in Spain - a step-by-step guide²

If it’s your first time selling a property in Spain, you’ll need to get to grips with how the process works.

Let’s run through the main steps, so you know exactly what to expect.

1. Find an estate agent

It’s not mandatory to use an estate agent to sell your property in Spain. You can list it on an online property site and handle the sale yourself, and save yourself money on commission fees.

But an estate agent could be a smart investment, for a few persuasive reasons. Agents have the local knowledge and expertise to sell your property at a good price, and they can also handle time-consuming tasks like showing buyers around the property.

To choose an estate agent, it’s a good idea to look for English-speaking agents with experience of working with UK sellers and expats. Ideally, get a personal recommendation from someone you know who has successfully sold a Spanish property.

Otherwise, you should look for a licensed, accredited agent who is registered with a professional body such as the Official School of Estate Agents (Colegio Oficial de Agentes de la Propiedad Inmobiliaria or API).³ Other trustworthy associations include AIM, MLS and ACI.

2. Advertise the property

Now it’s time to put your property on the market and advertise it to potential buyers. You should look to spruce up the property, before taking some photos to show off its best features.

Your estate agent will play a central role in advertising the property, but you can also list it on popular property sites such as:

• Fotocasa.es
• Idealista.com
• Enalquiler.com
• Pisos.com
• Tucasa.com
• Habitaclia.com.

3. Appoint a solicitor

It’s a very good idea to appoint a solicitor to give you advice on your Spanish property sale, and to oversee the legal and administrative aspects of the sale.

A personal recommendation is a good way to find a solicitor, but there’s also a list of English-speaking property solicitors on the UK Government website.

4. Appoint a notary

In property transactions in Spain, the notary (el notario) plays an important role. They’re responsible for managing the paperwork, taxes and registering the sale with the Land Registry, as well as making sure everything is done in accordance with the law.

Once you’ve accepted an offer, you’ll need to agree on a notary with the buyer. Notary offices are available in all major cities, and your solicitor may be able to help you find one. You can also find more information here.

5. Get your documentation ready

As you might expect, you’ll need to have certain documentation ready in order to legally sell your home in Spain.

Here’s what you (or your solicitor) should prepare:

• The property’s title deeds
• Copies of utility bills
• Receipts for local municipal tax (IBI) paid for the property
• Your residency card (if applicable)
• An inventory of furniture and other fixtures which will be included in the sale
• Details of any relevant community statutes.

6. Sign the deposit contract

Once the buyer’s solicitor has completed all the necessary due diligence checks, it’s time to sign the deposit contract. This preliminary contract will be prepared by the buyer’s solicitor, and both parties will sign. A date is specified for the completion of the purchase.

7. The deposit is paid

At the same time the preliminary contract is signed, the buyer will pay the deposit. The deposit is used as a firm sign of commitment to the transaction.

8. A meeting is held to close the transaction

To finalise the sale, a meeting will be held between the buyer, seller and their respective legal representatives. The notary will also be present. This is where the contract of sale (escritura de compraventa) will be signed.

The notary then informs the Land Registry of the sale and sends over copies of the title deeds. The final balance is transferred to you, and the buyer gets the keys to the property.

How much is the deposit?⁴

The typical deposit in Spain is 10%, just like in many other countries including the UK. But what happens to the deposit if either party changes their mind?

• If you (the seller) pull out of the deal, you may have to pay the buyer twice the amount of deposit they paid. This is seen as a form of compensation.
• If the buyer backs out of the purchase, they will lose their deposit.

How long does it take to sell property in Spain?⁵

According to the property website Idealista, around 20% of properties listed on its site sold in less than 7 days (in December 2022). 15% took up to a month to sell, 21% took up to three months to find a buyer, while 29% were on the market for up to a year.

The fastest sales were in cities like Granada, as well as Pontevedra, Salamanca, Tarragona, Lleida, Albacete and Barcelona. The slowest were in Teruel, Ceuta, Zamora and Lugo.

So, it really does depend on where you’re selling and the local demand for property in that area.

As for the time the property sales process takes, it’s usually only between one and two months for standard sales.⁶

Fees and taxes for selling a property in Spain

Now we come to the crucial question - how much will it cost you to sell a property in Spain? Let’s run through the main fees and taxes you need to know about.

What fees will I pay as the seller?⁷

The good news for sellers is that in Spain, the buyer will pay many of the fees associated with the sale. But you will still have some costs to pay.

The main one to know about is the estate agent’s fee. If you use an agent to sell your home, you can expect to pay a percentage of the sale price in commission. This is generally around 3-8%.

If you don’t live in Spain and have a Spanish bank account, you may also face fees when transferring the proceeds of the sale back home to the UK. If you want to avoid these hefty fees and get a great exchange rate for international transfers, consider checking out the Wise account.

Property taxes for sellers⁸

On top of fees, owners of Spanish properties may also have certain taxes to pay when they sell up. Here are the key taxes to watch out for:

IRPF income tax

This is tax paid on the capital gain on the sale. So, it’s only due on properties which sell for a higher price than they were originally bought for.

The rate of tax you’ll pay varies depending on how much profit you earn on the sale:

Profit from sale	IRPF tax rate
First €6,000	19%
€6,000 to €50,000	21%
€50,000 to €200,000	23%
€200,000 to €300,00	27%
€300,000+	28%

The tax rate may vary depending on your residency status, where there are different tax rates for non-residents. This will be something to ask your solicitor about.

There are also exceptions to the IRPF tax rules, such as:

• If you’re over 65 and have sold your main residence
• If you’re reinvesting the money from the sale into the purchase of a new property that will be your main home
• If the property was bought in the second half of 2012 (in which case you’ll be exempt from 50% of the capital gain obtained).

Municipal capital gains tax

This is another tax on capital gains, or profit made when the value of a property increases between the time it is bought and sold.

It’s based on the increase in the value of the land, and is paid to the local council in the area. The tax is calculated based on a few factors, such as the value of the land and how many years you have owned the property.

Save money on your Spanish property sale with Wise

Selling in Spain while living in the UK? You’ll need to figure out the most cost-effective way to transfer money between countries during your property sale. You’ll have estate agent fees to send over to Spain, and of course the proceeds of the sale to transfer back to the UK.

Check out the Wise account. It’s not a bank account but offers similar features.

With Wise, you can send international payments worldwide to 160+ countries for low fees* and mid-market exchange rates. All transfers are secure and trackable, and when you’re sending large amounts you’ll also get dedicated support.

Here are the main benefits for using Wise:

• Fast and easy setup with no physical paperwork
• Low, upfront, transparent fees
• Fully trackable transfers
• Fast transfer times
• Two-factor authentication and real-time notifications
• Dedicated support for large transfers

Sign up with Wise today 💰

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After reading this guide, you should have a better idea of what’s involved when selling a property in Spain. We’ve covered all the essentials, from the process and paperwork to fees and taxes.

You should be all set to get your property on the market, and wait for those eager buyers to come calling. Good luck!

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Sources used for this article:

1. ING - Deteriorating affordability will dampen Spanish house price growth
2. JamesEdition - How to sell property in Spain in 2024
3. Idealista - 5 things to look for in a good estate agent in Spain
4. Cumbre Villas - The buying process in Spain
5. Idealista - How long does it take to sell a house in Spain in 2023?
6. Solicitors in Spain - Conveyancing in Spain
7. Realista - Choosing the right estate agency to sell your property in Spain
8. Idealista - What are the taxes and costs of selling a house in Spain in 2023?

Sources checked on date: 12-June-2024.