The Responsibilities of the Seller/Vendor in Event of Selling Property in Spain
ENERGY RATING CERTIFICATE
A Seller is responsible to supply a property Energy Rating Certificate before any sale can be completed. This can be obtained from a local Architect who will assess the property and calculate the energy rating. This certificate must be presented to the Notary before the completion of sale can be finalised. The fee varies but will be from €200 upwards, depending on the Architect
If the Seller has a Mortgage, it is the Seller’s responsibility to obtain a final settlement figure from the Mortgage Lender, as well as to advise the Lender of the Notary date and time as the Lender must be present at the Notary to complete the settlement.
The Mortgage will be closed by the Notary, who will draw up a Cancellation of Mortgage Document. There is a fee to be paid to the Notary for the preparation of this document. Again, the amount of the fee for this document would depend on the Notary.
The final step in this process is to have the Mortgage removed from the Land Registry. This step be done by the Seller’s Lawyer (for a fee) or, to save money, the Seller can go to the appropriate Land Registrty Office to complete this step in person. By doing this themselves, the Seller(s) could possibly save approximately €500.
If the Seller decides to complete this step personally, this is the procedure for doing so:
(a) The Seller will firstly go in person to the Notary and pay the Fee for the Mortgage Cancellation document.
(b) Once the Seller has determined where the Land Registry Office for their sale is located, the Seller will take the Mortgage Cancellation Document to this office. The Seller will obtain a receipt from the Clerk. The Clerk will give the Seller a receipt for the Original Document, and should tell the Seller that within a few weeks they will be contacted by the office to advise the final costs, once the Removal of Mortgage from the Land Registry has been completed.
If the Seller is a Non-Resident, a Retention Fee of 3% on the Sales Figure must be paid. If, however, the Seller has lived and worked in Spain, a form of proof (Residencia Fiscal en Espana, Convenio) from the Tax Office is required by the Notary. It is recommended that the Seller apply for this document several weeks before the completion date, as the original, which is posted to you, can take several weeks to arrive.
If the Seller has a Gestoria, the Gestoria can obtain an advance copy of this form.
Alternatively, the Gestoria can also supply the Seller with the Verification Code. This code gives the Seller access to their Tax Office Personal Account. With this code it is possible to download a copy of the Residencia Fiscal en Espana, Convenio over the internet. If this form is not presented to the Notary on Completion Date, then the 3% will be charged to the Seller. This Fee will be reimbursed if the Seller is able to present this document.
If the property being sold is in a Community Complex, a letter from the Administrator of this Community advising the Seller’s Community Payment Status of the Community Fees.
LOCAL COUNCIL TAXES
The Seller is responsible for presenting proof of the last IBI and Basura Payments. These are the local annual taxes for council services.
CAPITAL GAINS TAX
If you have made a profit from the sale then you will have to pay Capital Gains on this profit.
INVOICES for SERVICE PROVIDERS
The Seller must also provide invoices from their Service Providers, i.e., gas, water, electricity, ect.
All outstanding payments will be deducted from the sales figure by the notary to ensure that the purchaser receives a debt free property.