selling spanish property

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kiwijbob

Registered User
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Have recently put an apartment on the market in spain,
spoke to an english estate agent and was informed that
the commission was 12%:eek: as the property was under
250k or so,if it was over it would then be ONLY 10%. Is this
the norm? Am I better off selling it thrlough a spanish
agent or will the english company get a higher price
selling it in GB?
 
Typical estate agent commissions in Spain are 2% from the buyer and 2% from the seller, plus TVA (VAT). I'd say shop around! ;)
 
thanks for the reply

Home now and didn't have time to shop around (v.long story) Didn't
give any of the paperwork to the agent and signed nothing as I thought
it was daylight robbery at the time....needless to say won't be going
with that crowd.

I did find this crowd who have a fee of 2.5% and a once off €450 fee
http://www.direct-auctions.com/
never heard of them, anyone else?

thanks in advance
 
Certainly sounds horrendous to me,it's not in lanzarote by any chance ?
 
if I were you I would put "se vende" sign on the property yourself to avoid agents fees.
Buyers are looking for private deals also to reduce fees also.
 
Hi

Most agents in the more popular costas earn between 10-15% commissions for sales of new builds. The commissions for re-sales is generally lower. However, the problem is that if you negotiate down the commission they are unlikely to push your property over those that would give them higher commissions.
 
Perhaps a wake up call for other (especially novice) property investors to apprise themselves up front of the details/costs of reselling rather than just concentrating on the purchase and potential capital appreciation and/or rental returns?
 
Hi Clubman

Yes, but I suppose many buy their dream home in the sun with no expectation of having to sell it. But what does amaze me is that lifestyle buyers don't take the time to plan out inheritance issues, which can cause terrible problems for next of kin. Also, unfortunately there is a frightening number of Irish investors buying in regions that they don't adequately research. These are intelligent people but unfortunately seem to put more effort into buying a music centre than a property!
 
spanish cgt to non-residents is 35% but there is a European case pending citing discrimination of the non-resident as residents cgt is 15%.
There is no spanish annual exemption for cgt purposes and no inflation exemption. There is also the "plusvalia" which is a cgt on the appreciation of the urban land which varies on time of ownership and how long you own the property.
re succession/inheritance tax
spanish real estate will always be subject to spanish inheritance tax irrespective of tax residency of beneficiary or donor. Rate varies from 8-82% depending on relationship and multipliers etc!
Most usual rate is 34%. Each spouse and child is entitled to an exemption of only 16000 (compare with 467000 in ireland?)
It is very important to get good legal advice on a spanish will and structure the will to allow a maximum number of beneficiaries to minimise tax etc.
this is just scraping the surface and will probably confuse more than inform so expert advise is vital.
Suffice to say spanish taxes are not for the faint hearted!
 
to add........ succession taxes are on the equity in the property so there are very significant tax advantages (both succession and wealth tax) to having a mortgage on a spanish property.
 
kiwijbob said:
Have recently put an apartment on the market in spain,
spoke to an english estate agent and was informed that
the commission was 12%:eek: as the property was under
250k or so,if it was over it would then be ONLY 10%. Is this
the norm? Am I better off selling it thrlough a spanish
agent or will the english company get a higher price
selling it in GB?
Click to expand...

SUOnds like that particualr spanish agent hasnt sold an awful lot this year and is trying to make it up from you!!! An resale property shoudl cost you 3%.
 
won't be going with that crowd of dick turpins, I've had dealings
with some local spanish estate agents and let just say they
seemed to take the idea of a siesta to the extreme:cool: but maybe
I'll just have to trust them?
 
please note

the Spanish tax changes in Jan from 35% to 18% (I think) for expats selling property

Also, some Remax will do it for 5%

C :)
 
kiwijbob said:
Have recently put an apartment on the market in spain,
spoke to an english estate agent and was informed that
the commission was 12%:eek: as the property was under
250k or so,if it was over it would then be ONLY 10%. Is this
the norm? Am I better off selling it thrlough a spanish
agent or will the english company get a higher price
selling it in GB?
Click to expand...


Love these stories !!! in a few words the guy your talking to is taking the p**s. On average you should pay around 2 or 3%. Spanish agents are having a rough time at the moment and are taking out on relsale customers!! Shop around there are hundred of agents to speak to.
 
icecool said:
Love these stories !!! in a few words the guy your talking to is taking the p**s. On average you should pay around 2 or 3%. Spanish agents are having a rough time at the moment and are taking out on relsale customers!! Shop around there are hundred of agents to speak to.
Click to expand...

also agree with the comment on selling private. This is becoming common. buyers are getting sick of agents in spain i think
 
icecool said:
also agree with the comment on selling private. This is becoming common. buyers are getting sick of agents in spain i think
Click to expand...

Most Spanish vendors do the job themselves by sticking Se Vende in the window as OP said. The agents are usually more involved in the sale of holiday homes on the Costas.

Having said that, I'd try to find an agent who has more Spanish clients, i.e. has offices in major cities too e.g. Inmovvan, Remax.

I was told that if the OH dies and does not have a will, then property automatically goes to children...is this correct??
 
cerberos said:
please note

the Spanish tax changes in Jan from 35% to 18% (I think) for expats selling property

C :)
Click to expand...

I was over there in July and asked solicitor if there had been any changes to 35%. He said not as yet. Do you mean Jan 2007? Where did you get this info..I'd like to look it up?:)
 
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