We have recently been asked what someone should do if they are moving back to their home country from living in Spain?
If you are selling your property, what will you need to pay out as a seller?
1) Plusvalia – every seller has to pay a tax based on the incremental value of the land on which your property stands over the amount of years you have owned it. This can be between 100€ and 2,000€ approximately, each case is different.
2) Community Fees – you need to make sure your Community Fees are up to date – you will may to present a Certificado de Communidad to the buyer on signing the Escritura. This may cost 15-25€
3) IBI & Utilities – Ensure your utility bills are up to date as these will need to be paid up to the date of sale. Sellers have to pay the IBI or Council tax for the whole year they are selling.
4) Mortgage Cancellation Fees – Your bank will probably have anywhere from a 0.5% to 1% cancellation charge on the balance of your outstanding mortgage
5) Mortgage Cancellation & Registration Fees at the Notary – In addition to point 4), as a seller you will have to ensure your mortgage is cancelled at the Notary and Registry. This may cost anywhere from 600 Euros to 1000 Euros, and is an amount that will probably be retained by the solicitor to ensure this is done
6) Non Resident Retention 3%: If you are non-resident in Spain, the buyer of your property will also have to retain 3% of the Escritura Sales Price to pay directly to the Spanish tax man (Hacienda) on your behalf towards your Capital Gains Tax. (This can be claimed back by you if there is no gain and your taxes are up to date). Fiscal residents do not have any retentions made on them, but they may have to pay tax on the sale in the following year through their tax returns.
7) Agents Commission – If you have used an Agent to sell your property, then you will also have to account for the Agent’s fees. These vary greatly.
8) Legal fees: A good legal office should prepare prepare utilities contracts, community charge and Suma invoices, liase with the purchaser’s representatives and the Notary, prepare the Notary appointment and all related paperwork, accompany the seller to the Notary and translate, calculate the 3% retention, calculate and advise re Capital Gains Tax and give fiscal representation throughout the Process. This will probably cost up to approx. 1,110€. Often you get what you pay for.
Obviously you will still have your Capital Gains Tax Liability, but that will depend on your profit.
Other matters to think about:
1) If you are moving back you need to de-register your Residencia with the police.
2) You should however keep your NIE number as you may need it in future (you never know!).
3) You also need to cancel your fiscal residency with the tax office, and change to paying non resident taxes in future if you are going to keep your property as a holiday home. Or just cancel it.
4) You don´t need to do anything about your SIP card, as when you register in your home country for medical care, this will eventually get sorted.
5) Padron: if you are keeping your property, you may wish to remain on the Padron as it can be of use, otherwise you do need to remove yourself from the Padron.
6) If you are selling a car, make sure the paperwork is done properly, as otherwise you could find yourself still liable for the Road Tax.
Spanish Solutions can help with all of this or advise.