Properties International Mallorca : Real Estate Agency with property for sale in Puerto Alcudia, Alcudia, Puerto Pollensa, Pollensa and all of Northern Mallorca. Properties in Majorca - Immobilien auf Mallorca - Propiedades en Mallorca -

Real Estate Agency with property for sale in Puerto Alcudia, Alcudia, Puerto Pollensa, Pollensa and all of Northern Mallorca. Properties in Majorca - Immobilien auf Mallorca - Propiedades en Mallorca -

Properties International Mallorca : Guide to selling property in Mallorca (Majorca), Spain

2. Selling Property

Guide to selling property in Mallorca (Majorca), Spain

If you are selling a property, the basic procedure is, of course, the same as for buying.

A priority for you is to make sure that you choose an estate agent with whom you feel confident, and to ensure that the commission structure is clearly understood. Once a sale has been agreed, you need to give the following documents to your estate agent or solicitor to enable quick progress to be made:

  • Original Escritura Pública (Title Deeds)
  • Copies of your last IBI/BASURA receipts
  • Copies of your last utility bills (water, gas, electricity)
  • Copy of your community statutes, with the name and address of the community administrator
  • Copy of your last receipted community bill
  • An inventory of any furniture included in the sale
  • If you are a resident of Spain, and therefore not subject to the 5% retention (see below), a copy of your most recent income tax declaration

5% Retention

If you are a non-resident of Spain, the buyer must retain and pay 5% of the declared sale price to the tax authorities (or Hacienda as it is commonly referred to) at the time of completion, on account of any taxes you may owe, in particular any Capital Gains Tax liability you may have (see below). If, in fact, your Capital Gains Tax liability amounts to less than the 5% retention you can, following completion, complete and submit tax form 212 within 30 days and request a refund of the excess. The refund should be made within 90 days of submission of the completed form. If, on the other hand, your Capital Gains Tax liability amounts to more than 5%, you need to complete tax form 212 and submit this to the tax authorities with the extra payment within 30 days of the sale. It is recommended that you seek the advice of a local accountant to ensure that all the correct taxes have been paid and to make sure you do not pay to much!

Plus Valía

Please see the section entitled “Costs, Fees and Taxes”. This tax is usually paid by the
seller, however in Mallorca it is often negotiated that the buyer must pay, but is normally only a few hundred Euros. Your estate agent can check exactly how much the plus valia is by bringing the title deeds of the property to the local townhall.

Capital Gains Tax

You are liable to pay Capital Gains Tax on your net profit. Your net profit is calculated by taking the figure you are selling for and deducting (i) the costs of selling, (ii) the initial price for which you purchased the property, (iii) all costs & fees incurred in the purchase and sale of the property and (iv) the statutory inflationary allowance.

Non-residents of Spain are taxed at a flat rate of 35% and residents at the maximum rate of 15%. As a resident of Spain you are exempt from paying Capital Gains Tax on your net profit if the property being sold is your only or main residence and you purchase another property for the same value or more within 2 years of the sale. If the property you purchase within 2 years of the sale is worth less than your net profit, the relief is apportioned accordingly. It is however recommended again that you seek advice from an accountant as each sale and fiscal person is a different case and you can use certain bills to deduct your tax if you have for example renovated or improved the property somehow at a cost.