When selling a house in Spain, it’s wise to prepare all necessary documentation and consider the taxes you will need to pay. It’s also crucial to determine if you are a resident or non-resident in Spain.
According to the Spanish Tax Office, a person is considered a legal resident in Spain if any of the following circumstances apply:
- They are in Spain for more than 183 days of the calendar year.
- Their primary economic activities are based in Spain.
Their non-legally separated spouse and dependent underage children usually live in Spain.
Required Documents across Spain
To sell your house in any Spanish Autonomous Community, several compulsory documents are required. These documents fall into two categories: those proving ownership of the property and those proving you are up to date with payments related to the property.
Certification of Ownership
- Deed of the House or Title Deed: The document you received when you bought the property. It is the main record that certifies the property is yours and is registered in the Land Registry (Registro de la Propiedad).
- Identity Document: The document that provides personal and unequivocal identification, such as the “NIE” (Foreigner’s Identity Number).
Certification of Being Up to Date with Payments
- Nota Simple Registral (Land Registry Record): A standard official document from the Land Registry that details the status, ownership, and possible charges on the property.
- Impuesto sobre Bienes Inmuebles (IBI) Property Tax: This tax is levied on property ownership and is usually paid annually to the corresponding town hall. The receipt of the last payment must be presented.
- Certificado de Estar Libre de Pagos de la Comunidad de Vecinos (Certificate of No Outstanding Debts with the Resident’s Association): If the property is in a community or residential area, a certificate from the property manager must be provided to prove all payments are up to date.
- Certificado de Deuda Pendiente y Cancelación Registral (Certificate of Outstanding Debt and Cancellation of Encumbrances in the Registry): If the property has a mortgage at the time of sale, a certificate of the outstanding debt must be provided.
Other Required Documents
- Certificado de Eficiencia Energética (Energy Performance Certificate, EPC): This document accredits the energy classification of the home, ranging from A (highest efficiency) to G.
- Certificado de Inspección Técnica del Edificio (ITE) (Report of Building Inspection): For houses in older buildings, this certifies the building’s condition and notes any deficiencies or pending renovations.
- Cédula de Habitabilidad (Certificate of Occupancy): An official document stating that a building is safe and legally usable. Obtaining this requires a technical report by a qualified professional.
Taxes When Selling a House in Spain as a Non-Resident
When selling a property in Spain, non-resident owners must declare their profits to the Spanish tax authorities.
IRNR: Capital Gains Tax for Non-Residents
To calculate the IRNR (Capital Gains Tax), consider the difference between the acquisition value and the sales value:
- Acquisition Value of the Property: The purchase value plus notary fees, land registry fees, and any improvements and investments made to the property.
- Sales Value of the Property: The selling price plus expenses from the sales process, such as real estate agency fees and notary fees.
Once the difference is calculated, a 19% tax rate applies to citizens of the European Union, Iceland, or Norway, while a 24% tax rate applies to citizens from other countries.
Capital Gain or Tax on the Increase of Land Value (IIVTNU)
This tax reflects the increase in the property’s value during the ownership period. The capital gain tax depends on the increase in the land’s value and the tax rate set by the municipality where the property is located.
