FAQs: Selling property in Spain (Costa del Sol)
If you’re considering selling your home in Spain but aren’t sure where to begin, the right guidance can make all the difference. Having expert support at each stage of the process ensures a smooth, efficient, and successful sale. We highly recommend appointing a single real estate agency to represent you. A sole agent is more motivated and far more likely to invest the necessary time, effort, and resources into marketing your property, helping you achieve the best possible result in the shortest time.
To make the selling process as simple and stress-free as possible, we’ve put together a comprehensive list of frequently asked questions. These cover everything from your initial preparations and the role of your real estate agent to the key steps in the selling process, the documents you’ll need, and the support available to you after completion.
Property Assessment
- What information do I need to provide to start a property assessment?
You will need to provide details about your property, such as the location, size, condition and legal status. The more information you can give the better, as it is this information that we use to evaluate whether your property aligns with our expertise.
- What happens during the assessment phase?
If your property falls within our area of expertise, we’ll move forward by visiting property and conducting a more thorough assessment of its features, strengths, weaknesses and any challenges.
- Do you help with pricing the property?
After assessing the property, we’ll provide professional pricing advice based on the condition and current market trends, and any preparations required to appeal to buyers and achieve a successful sale.
Listing Agreement
- What happens after we agree on a listing price?
Once we agree on the listing price, we prepare a clear agreement that outlines the details of our service, the duration of the agreement and our commission structure.
- Do I have to sign an exclusive listing agreement?
No. You can choose whether you want us to market your property exclusively or non-exclusively, depending on your preferences. The benefit of an exclusive listing is access to additional services and more comprehensive support throughout the sales process.
- What is the standard commission rate for selling property on the Costa del Sol?
Standard commission is 5% of the final sale price, plus VAT.
- What documents and information do I need to supply when listing my property for sale on the Costa del Sol?
You must provide complete and accurate documents and information, including the mandatory Nota Simple and Energy Certificate / CO₂ rating. The following specifications, personal details and listing conditions are also required:
- Full address
- Cadastral number
- Size (built, terrace, plot in m²)
- Number of bedrooms and bathrooms
- Parking spaces and storage rooms
- Year of construction
- Fees: community fee, IBI tax, and garbage tax
- Listing conditions: Agreed price, exclusive / non-exclusive clause, period of validity and the agency commission percentage.
Property Dossier & Visuals
- What happens after the listing agreement has been signed?
After the listing agreement is in place, we compile a detailed dossier outlining the home’s features, legal status, utilities, running costs and quality of finishes. This dossier will provide essential information that will allow us to market your property accurately and effectively.
- Will you create a professional online listings for my property?
Yes, we will prepare an engaging listing that includes a complete and professionally written description of your property. When applicable we arrange for professional photography, 3D tours, video walkthroughs and drone footage to create a compelling visual presentation. Your property will also be marketed across multiple channels, including social media, newsletters, window displays and other platforms to maximise visibility.
Promotion, Viewings and Negotiations
Promotion
- How do you find potential buyers for my property?
We use our extensive client database to identify buyers who match your property profile. We also promote new listings through our weekly newsletters to reach active and interested clients. We also collaborate with a network of other agents on the Costa del Sol, informing them of new listings and sharing commissions if they introduce a buyer.
- How will my property be promoted online?
Your property will be featured on our website, which is optimised to rank highly for relevant search terms for property for sale on the Costa del Sol. In addition, we run targeted campaigns on major social media platforms to maximise exposure.
Viewings
- How do you qualify potential buyers before arranging a viewing?
We personally speak with every prospective buyer or collaborating agent before arranging a viewing. This allows us to understand their requirements and ensure your property is presented only to genuine potential buyers. Having established that they are suitable candidates, they will be provided with all of the property details.
- How are viewing appointments arranged?
If &LIVING hold the keys, we schedule the viewing directly, If not we coordinate to agree a convenient time.
- Will you accompany buyers during the viewing?
&LIVING agents accompany all potential buyers on viewings, and they are fully briefed and equipped with comprehensive knowledge about your property. However, we recommend that you remain out of sight during a viewing to allow potential buyers to imagine the property as their own. We keep track of all viewings that we conduct and provide feedback from potential buyers regarding your property.
Negotiation
- What happens if a buyer submits an offer?
If a buyer expresses interest of submits an offer, we will immediately inform you and start guiding you through the negotiation process. We will help you negotiate the price to ensure you achieve the best possible outcome, deposit terms and completion timing. We will also help to negotiate any inclusions such as a furniture and advise on any other topics raised.
Download your full Seller’s Guide from &LIVING, It’s filled with valuable insights, practical tips, and essential information to support your buying journey.
Sales Process
- What documents do I need to provide to support the initial contract?
The buyer’s lawyer will request essential documentation to verify your property’s legal status. This typically includes the Nota Simple, Licence of First Occupation (LPO), Energy Certificate, community status information and recent bills for IBI, community fees and garbage tax, among other relevant documents.
Reservation Contract
- What is the purpose of the ‘initial contract’ and what happens after it is signed?
The initial contract outlines the main conditions of the sale and allows the buyer’s lawyer to begin due diligence. At this point, the buyer submits a deposit, which is typically non-refundable, unless legal issues are discovered. Once the contract is signed by both parties, &LIVING will immediately take the property off the market.
Private Purchase Contract (PPC)
- What is the Private Purchase Contract and what does it include?
The PPC is a formal, legally binding contract prepared by the lawyers and typically completed within 2–4 weeks. It sets out all key terms of the sale, such as price, payment method, completion date and any additional conditions, and confirms the commitment of both parties.
- What payments are made at signing, and what happens if either party withdraws?
Upon signing the Private Purchase Contract, the buyer pays 10% of the purchase price (minus any earlier deposit). If the buyer later decides not to proceed, this amount is forfeited. If you, as the seller, withdraw, you must return double the amount as compensation to the buyer.
Completion
- What happens at the final completion?
Completion takes place at a notary’s office, where the balance of the purchase price is paid and ownership is officially transferred to the buyer. This is also when any final paperwork is signed and formalised. If you cannot attend, your lawyer can represent your interests through a Power of Attorney. The buyer’s lawyer usually handles the post-purchase administration such as the transfer of property registration, utilities and filing any applicable taxes.
Post-Sale Support
- Do you offer support after the sale has been completed?
Yes. Our commitment stretches beyond the sale is complete. We’re here to answer any follow-up questions you may have or assistance you may need.
Taxes and Costs associated with the purchase of your property (owned by an individual)
- What taxes and fees should sellers expect to pay after selling their property?
After completion, as the seller, you may be liable for several taxes related to the sale, here is a breakdown of the main taxes you can expect to pay: Capital Gains Tax (CGT), Municipal Capital Gains Tax (Plusvalia Municipal), Income Tax Retention for Non-Residents, Mortgage Cancellation, Notary Fees and agency fees.
Capital Gains Tax (CGT)
- What is Capital Gains Tax (CGT) and how is it calculated?
Capital Gains Tax applies to the profit made when selling your property. It is calculated as the difference between the original purchase price and the final sale price, minus certain allowable costs such as legal fees or improvement expenses. The tax rate depends on your residency status. Spanish residents pay between 19% and 30% on capital gains, while non-residents pay a flat rate of 19%.
- Are there any exemptions or ways to reduce Capital Gains Tax?
Yes. Exemptions may apply for residents over 65 who have used the property as their primary home for at least three years, as for sellers who reinvest the proceeds into another primary residence in Spain. A tax advisor can help identify any additional deductions or exemptions you may qualify for.
- Why is understanding Capital Gains Tax important?
Understanding your CGT obligations helps you to accurately calculate your net income and ensures compliance with Spanish tax laws. Professional tax advice is recommended to avoid unexpected liabilities.
Municipal Capital Gains Tax (Plusvalía Municipal)
- What is Municipal Capital Gains Tax?
This is a local tax charged on the increase in the land’s value from the time you purchased the property to the moment you sell it. It reflects the appreciation of the land itself, not the building. Local councils (ayuntamiento) set their own rates and calculation method. The amount is based on the cadastral value of the land and the length of time you have owned the property, meaning the longer the ownership period, the higher the potential tax.
Income Tax Retention for Non-Residents
- What is the rate of income tax retention for non-residents?
Non-resident sellers must pay a mandatory 3% withholding tax, which is retained by the buyer at completion and paid directly to the Spanish Tax Authority. This serves as an advance payment toward any capital gains tax owed. As a non-resident seller, you will need to file a tax return to calculate your final capital gains tax liability, and if the actual tax due is higher, additional payment is required; if it is lower, you could be entitled to a refund.
Mortgage Cancellation Fees and Notary Fees (if applicable)
- What costs are involved in cancelling an existing mortgage?
If there is still a mortgage on the property, it most be formally cancelled in the property registry before the sale of the property can be completed. You will need to pay notary fees and in some cases bank fees, with costs totalling between 0.5% to 1% of the remaining mortgage amount.
Agency Fees
- How much is a real estate agent’s commission?
When selling through a real estate agent, the commission is typically around 5% of the sale price, although the exact amount will depend upon the agreement you sign.
Taxes and Costs Associated with the sale of property (owned by a company)
- Do company-owned property sales follow the same tax rules as personal property sales?
Not always. The taxation and costs involved in selling a company-owned property can differ significantly from those of a privately owned property, depending on the company structure and specific circumstances. Professional guidance from lawyers and accountants is essential to understand the tax implications, obligations and potential costs in your particular case.
Please note that the information provided here is intended for general guidance purposes only. It may be subject to changes and should not be considered as legal or financial advice. For personalised and up-to-date advice, we recommend consulting with a lawyer or tax adviser.
