Selling a property in Majorca
Documents needed to offer a property for sale If you require help contact us.
The documentation required for the sale of a property is Spain has changed rapidly in the last ten years most of this list is now obligatory.
We can help you with all the paperwork listed, make a valuation of the legal status of your property and the documents that will be required to sell your property.
Should you need other documentation to complete your sale recommend local architects and technical architects (surveyors) to complete the paperwork for you.
Please feel free to contact us for a free consultation.
Costs and documents required for the sale of a property
Many buyers’ lawyers will require many of the documents needed for a sale before a purchase option is written and signed, a buyer will be more confidant and more likely to make an offer were at a minimum the seller can provide a Certificado de Habitabilidad (Cedula) and a Certificado de Energética.
Many local and overseas buyers will not visit a rural property which does not have a
Cedula due to the large numbers of properties which are not legal in Majorca though a
Cedula is not a guarantee of a properties legality many ask if a property has a
Cedula before they ask anything else.
1) Property title deed (Escritura) and in the case of an inherited property change of title documentation.
2) Cadastral Registration document of the property (Nota Simple).
3) Last receipt for the local council tax (IB´s)
4) Last receipt of rubbish taxes. ( Impuesto de Recogida de Basuras )
5) Contracts in the owner’s name for, water, power, gas, telephone… Not in the name of a tenant.
6) Final bills for any services, water, power, gas, telephone in the owner’s name not in the name of a tenant.
7) Certificado de Habitabilidad in force from the date of issue the certificate is in force for ten years this is also known as a Cedula. Older houses which have never had a Cedula which is common in villages of great age which have been owned by the same family for many years and rural properties of great age.
The formula to apply for a Cedula is to apply retrospectively for a “Cedula Carrencia” the competent technician is required to apply to the town hall for documentation and create a report including photographs and a plan of the property.
8) Certificado de Energética, (mandatory since 2013, also required before the property can be offered for sale or rental) In the case of buildings for reform this is not obligatory, but most buyers’ lawyers will want a copy and do consider it obligatory. The certificate shows the energy need by the house over a year, classifications are from A to G (A being the highest and G the lowest) where information is offered on energy consumption and greenhouse gas emissions. carbon dioxide (CO2) from the building under normal conditions of occupancy and use.
9) Certificado de no existir infracciones urbanísticas, a notification or certificate from the town hall that there are no local taxes, fines, or outstanding files for planning violations against the property.
10) Expediente de Dominio due to a change in the law in 2015. When buying with a mortgage the m2 described on the Catastral Registration document of the property, must coincided with the m2 described in the Título de propiedad (escritura)…(deeds). Or the notary may not legally sell the property when the sale is financed with a mortgage. however, does not apply where a mortgage is not required by a buy. An official geographic survey is required to resolve this issue, which may require the agreement of any neighbours with a property boundary included in the survey.
11) El certificado de antigüedad a certificate of the age of a house a legal and official document that indicates the date on which the construction of the house was finished if the construction is resent. Or if the house is of some age the town hall issuing the certificate many use the date the house was included in their records. For some properties, proof of age many be needed including photographs and other documentation which must be presented by an architect in a formal which the town hall accepts as proof of age. When buying a property to reform this is particularly important to the buyer as information is gathered from aerial photographs from 1956 onwards. The town hall may restrict the reform of parts of a property if it cannot be shown to be pre-existing date on which planning laws changed effecting the occupation level permitted on urban and rustic plots.
If you’re selling a property which requires a complete reform or a reform of part of the structure the certificate will make clear to the buyer, the legality of the property.
12) Only applicable to apartments the ITE is a survey of the conditions of a whole apartment building. The community of residents is required to request and then act on the results of the survey or be fined. It applies to buildings of more than 50 year in age.
13) Apartments in communities of owners, a certificate from the president or administrator of the community stating that the present owner has made all payments to date and has no outstanding dues to pay to the community.
Mandatory Seller Costs
Plusvalía Local government tax on the increase in value of the land value since the property was last sold, or in a new system which some town halls have adopted system that reflects the evolution of the real estate market over the time frame which the house has been owned.
Agency Commissions (Normally between 5% to 7% of the sales price plus IVA)
Capital Gains Taxes For tax paying residents of Spain 19 percent for the first €6,000 profit 21 percent for profit between €6,000 and €50,000, 23 percent for any profit above €50,000. The Capital Gains is calculated at a higher rate for Non residents who are not tax payers in Spain. For some there are exceptions, selling your principal property or residence with the intention of purchasing a new permanent residence. Aged over 65 selling a property which has been your permanent residence for more than three years, Capital Gains does not apply and you are not required to the invest in another property. Properties that were bought in Spain up until 31st December 1994 though not exempt from Capital Gains but are eligible for a Capital Gains reduction.
Retention of 3% for Non Resident Sellers by the tax authorities, the buyer is expected to pay 3 percent of the price to tax authorities in Spain as a capital gains withholding tax retention in order to cover the capital gains liability of the vendor.
Contact us about selling or renting your property.