In this episode of "Confianz: After Hours", An-Sofie and Glenn guide you through the entire process of selling a Spanish property as a Belgian non-resident. From the initial preparations to the final tax settlement in both Spain and Belgium, this guide offers a clear and practical roadmap.
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1. The Start of the Sales Process
The decision to sell often comes after about five years and is driven by the desire to buy something bigger, or by health or family reasons. Although pure profit is rarely the main motivation, sellers who bought five years ago often realise a nice capital gain.
First Steps:
- Realistic Valuation: Engage several estate agents for correct pricing. A good estate agent will also advise on any refurbishment works.
- Cost Incalculate: When setting the asking price, already take into account Spanish capital gains tax and selling costs.
- Broker Select: The quality and commissions of estate agents in Spain vary widely. Choose carefully and make sure you have a clear mandate agreement (exclusivity, commission, duration, action points). Selling yourself through your own network is also an option.
2. The Essential Sales File
A complete and correctly prepared dossier is crucial for a smooth sale and avoids delays, renegotiations or the deal being called off.
Required Documents:
- Property deed (Escritura de Compraventa): The notarised proof of your purchase.
- Nota Simple Informativa: A recent extract from the Property Register showing legal status, owner and any encumbrances (mortgage, attachment).
- Energy performance certificate (EPC / CEE): Mandatory since 2013 and valid for 10 years. The cost (€100 - €500) is for the seller and often tax deductible.
- Certificate of habitability (Cédula de Habitabilidad / Licencia de Ocupación): Essential for buyer to put utilities in his name. May need to be renewed.
- Other Documents:
- Recent proofs of payment of property taxes (IBI/SUMA).
- Proof of payment of community fees (gastos de comunidad).
- Certificate from the trustee that there are no outstanding debts.
- Copy of passport and NIE number of all sellers.
- If applicable: inventory list (in case of sale with furniture), bank certificate outstanding mortgage.
3. Legal Audit: Register vs. Land Registry
A common problem in Spain is the discrepancy between the Property register (Registro de la Propiedad), which establishes legal ownership, and the Land registry (Catastro), which has a tax function. Differences in square metres or non-registered alterations (e.g. a swimming pool) could jeopardise the buyer's financing.
Tip: Get a proactive legal audit done by your lawyer to reconcile physical reality, cadastral data and registration and regularise any problems in a timely manner.
4. From Negotiated Agreement to Notarial Deed
- Contrato de Arras: This is a binding private sale contract that sets out all the terms and conditions (price, description, deadline for notarial deed). The buyer usually pays a down payment (arras) of 10% of the sale price.
- Possible stumbling blocks: Be vigilant about discussions on the inventory list, limit suspensive conditions for financing, and do not allow commissioning before the deed is executed.
- Escritura Pública de Compraventa: The final step is the signing of the notarial deed. This is where the remaining amount is paid (usually via a guaranteed bank cheque) and the keys are handed over.
5. Spanish Tax Obligations for the Seller
Two important taxes are levied after the sale.
A. Municipal Value Added Tax (Plusvalía Municipal)
- A tax on the increase in value of the soil.
- Declaration and payment in 30 days after the sale.
- Choice of two calculation methods:
- Real Method: Based on actual net profit.
- Objective Method: A flat-rate calculation based on cadastral land value and number of years of ownership.
- Important: If you sell at a loss, you do not have to pay this tax. Prove this with your purchase and sale deeds.
B. National Capital Gains Tax (Ganancias Patrimoniales)
- Tax on the actual net profit of sales.
- Tariff for EU non-residents: 19% on net profit.
- Calculation Net profit:
(Sales price - Sales costs) - (Purchase price + Purchase costs + Value-added Investments) - Deductible expenses: Prove all costs (broker, lawyer, notary, taxes, EPC, major renovations) with official invoices (facturas).
The 3% Levy (Retención)
- The buyer is legally obliged to 3% of the sale price withheld and passed on to the tax authorities as advance On your national capital gains tax.
- Inside four months After sale, your lawyer should file the final declaration (Modelo 210) in.
- Is the calculated load lower than the 3%? You get the difference back.
- Is the tax higher? You have to pay the difference.
6. Obligations in Belgium after the Sale
Even in Belgium, you need to take some steps after the sale.
- Administrative Deletion: Report sales within four months to the FPS Finance (Foreign KI Cell) via MyMinfin. This prevents the property from appearing incorrectly in future returns.
- Belgian Personal Income Tax:
- The added value itself is not taxable in Belgium thanks to the double taxation treaty.
- In the return for the year after the sale, you give the cadastral income (KI) pro rata for the period you owned.
- This income counts under progression reservation: it is added to your Belgian income to determine a higher average tax rate, which is then applied to your Belgian income. As a result, you pay slightly more net Belgian tax.
Conclusion: Good preparation, a complete file and professional legal and tax guidance are essential for a successful and hassle-free sale.
