Selling Your Property

The following guide to selling a property is designed to ease the process by providing useful tips and current information. For those who prefer a more personal service our friendly local team have extensive experience in assisting sellers and are on hand to answer any questions. Make your property stand out from the competition. The following tips will help to do just that.

Remove as many personal items as possible and stage your house to make the space a blank canvass so that potential buyers can envisage themselves living there surrounded by their own possessions and with their home designed to suit their own personal taste.

Pay attention to details such as paintwork, doors, kitchen, and bathroom taps, fitted appliances and installations to ensure you portray a level of finish that shows the house has been cared for.

Emphasise the positive aspects based on what buyers in your area want, A tourist license, large plot of land or even a garden suitable for families could make all the difference. A qualified assessor can advise on this to get you the best possible price for your property.

Remember the Balearic Islands are all about outdoor living. Swimming pools, terraces, gardens, and outbuildings should all be well maintained. Repairing any broken fences, cleaning windows, and setting out any garden furniture for use will all provide kerb appeal.

Make every photo a money shot, use a skilled photographer and attract buyers with the use of colour, light, and attention to detail. Remember, however that the photos must portray a realistic image of the house so that a subsequent viewing does not disappoint.

A trusted, accredited estate agent will understand local taxes and paperwork requirements. An experienced agent is also able to spot common pitfalls before you do. Most importantly a good agent knows how to create a buzz about your property, will have knowledge of the local market and will guide you throughout the whole process.

The principal tax when selling your property in the Balearics is the Impuesto sobre la Renta de las Personas Físicas (IRPF) or capital gains tax (CGT), which applies to most countries when selling property. The capital gains tax is a tax paid on the profit made. Residents in Spain are liable to pay IRPF at a variable rate as shown below:

19% for the first EUR 6,000 of taxable income.
21% for the following EUR 6,000 to EUR 50,000 of taxable income.
23% for the following EUR 50,000 to EUR 200,000 of taxable income.
27% for the following EUR 200,000 to EUR 300,000 of taxable income.
28% for any amounts over EUR 300,000.

For example, if you bought a property for 200,000 euros and sell it for 350,000 euros, you will have to pay capital gains on 150,000 euros profit in the following way:

350,000€ current sale price – 200,000€ original purchase price = 150,000€
19% for the first 6,000€ (6,000 x 0.19)
21% for the next 50,000€ (50,000 x 0.21)
23% on the remaining 94,000€ (94,000 x 0.23%)

That would equate to:
1,140€ + 10,500€ + 21,620€ = 33,260€ IRPF to be paid

* Tax rates can change or vary. Always consult with a tax expert for exact up to the minute information.

Situations where Spanish residents are exempt from capital gains tax are as follows:

Age – Residents over 65 years of age are exempt

Exemption by Reinvesting your capital gains into another primary residence – This is only possible if you declare your intentions in your Spanish income tax declaration (Declaración de la Renta) The full amount obtained from the sale of your property must be reinvested within two years of receiving income from the sale.

Failure to profit from the sale – If no profit is made or the property is sold at a loss you would be exempt from IRPF

* Tax rates can change or vary. Always consult with a tax expert for exact up to the minute information.

If you do not have Spanish residency, you are liable to pay a non-resident income tax (Impuesto sobre la Renta de no Residentes) which is 19% for EU residents (also including Iceland and Norway) and 24% for residents from non-EU countries (including the UK). Non-residents from EU or EEA countries may also be exempt from this tax when reinvesting into a primary residence that does not necessarily have to be in Spain.

* Tax rates can change or vary. Always consult with a tax expert for exact up to the minute information.

Another tax non-residents are liable for when selling property in the Balearics is the income tax provision or Retención. The Spanish Tax Agency withholds 3% as a guarantee to cover any taxes resulting from the sale of your property. This is taken directly from the purchaser, so sellers only receive 97% of the property proceeds until IRPF is paid. This tax is refundable upon submitting a claim if your tax liability is less than 3%.

* Tax rates can change or vary. Always consult with a tax expert for exact up to the minute information.

Plusvalía is a tax based on the increase in value of urban land. Land unfit for building on is not subject to this tax and it is calculated by the town hall. It is based on the cadastral value, location, and the period of ownership of your property. Plusvalía only applies to the value of the grounds, not the construction and is payable regardless of whether the property is sold for a profit or loss. The tax varies throughout the Balearics but is higher in areas where demand for property is higher.

* Tax rates can change or vary. Always consult with a tax expert for exact up to the minute information.

Obtaining an energy certificate has been a requirement of Spanish law since 2013. It is an obligation for all property owners selling or renting out their property and is issued by a qualified professional such as an architect or surveyor. The cost of this certificate can range from 100€ to 500€ depending on the size of the property but can be offset against the IRPF (capital gains tax).

Agency fees are paid by the seller of the property and can also be deducted from the IRPF (capital gains tax).

Von Anderson Real Estate takes care of valuations, viewings, marketing and communication with lawyers and notaries.

We also provide advice on taxes when selling your Balearic property but it is always advisable to consult with a tax expert/lawyer to calculate exact selling taxes.

Valuations

At Von Anderson Real Estate we offer completely free personal valuation service by our very own technically certified ABAI/ADPI assessor to help you to establish the most favourable and achievable selling price.

Representation

As an accredited real estate agent with a solid reputation established over 20 years, we will strive to support you throughout the selling process from initiation to completion. Our experienced bilingual agents are on hand to assist in dealing with local authorities, council planning departments, lawyers, notaries, engineers, architects, and local trades people, with whom we have built up an exemplary reputation for professionalism, integrity, and trust.

Marketing

Our extensive network allows us to advertise your property using professional photography via our website, social media platforms and additional property portals. This guarantees global visibility designed specifically to generate interest in your property and highlight unique selling points indicated by you. We are an independent, long-established company with a reputation for transparency and integrity. Our local presence has resulted in an excellent network of mutually trusted contacts, making us the obvious choice to sell your Balearic real estate.

As an accredited member of the Association of Balearic Real Estate Agents, API Baleares and ADPI Assessors, we will be on hand to help with anything, and you can be confident that we have your best interests at heart.