REAL ESTATE
LA PALMA
(+34) 646 40 58 49
SELLING
Would you like to sell your house, flat or building plot on La Palma?
As a competent, reliable, certified and experienced partner, we offer you our qualified service to successfully sell your property on La Palma.
Benefit from our excellent contacts with notaries, authorities and our broad portfolio of solvent national and international clients who are looking to buy property on La Palma.
As a property seller, you are faced with a multitude of questions, which we are happy to help you answer. Possible questions could include:
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What documents are required for the sales process?
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How can the optimal selling price be determined?
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What steps need to be taken before the sale?
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What taxes and fees are incurred during the sale?
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How can the sales process run as smoothly as possible?
Please do not hesitate to ask us any questions you may have – we are here for you!
An overview of our property sales services for you:
PROPERTY INSPECTION:
We will inspect your property and, if desired, estimate its sales value based on the current market situation and our experience, with the aim of determining the optimal price for your property.
In order to provide a well-founded valuation, it is also necessary to review the existing documents for your property. (We can assist you in obtaining any missing documents – see below.)
PRESENTATION:
We photograph your property for you and, in addition to the photos, create an inviting sales video. In doing so, we focus on the advantages of your property – always with an eye for what is special and unique.
We then write an appealing, detailed, informative and honest exposé and present your property on our website, our YouTube channel and other relevant property portals so that your property is found as quickly as possible by the target group we want to address together.
MARKETING:
We implement a targeted marketing strategy for your property in order to appeal directly to potential buyers and make your property stand out on the property market. This is always based on direct marketing and our extensive customer database, i.e. our registered prospective buyers, whom we inform immediately when a suitable property becomes available.
In addition to our constantly updated website, we also use promotional videos for your property and attract new customers via our YouTube channel and presentations on social media.
Furthermore, we place advertisements in local media and put up information boards on the property.
SUPPORT AND ADVICE:
We are personally available to answer any questions you may have and will support you every step of the way during the sale of your property to make the process as pleasant and effortless as possible, so that you can relax and look forward to a successful conclusion.
In this context, it is particularly important that the documents are consistent and complete. We are happy to assist you in completing all the necessary documents to offer you and the buyer maximum security and enable a successful sale.
Important documents for the sale include:
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Escritura Pública de Compraventa
We and the notary require your existing purchase agreement in order to clearly determine the ownership structure.
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Escritura Pública de Herencia
If you have inherited the property, we and the notary require the certificate of inheritance.
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Land registry entry (NOTA SIMPLE INFORMATIVA)
If your property is registered in the land registry, it is usually much easier to sell, especially to prospective buyers who need a bank loan, as banks are obliged to request a land registry entry. However, there is no obligation to register a property in the land registry if it is not encumbered with a mortgage.
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Cadastre / Land survey
It is a legal requirement that, when certifying a deed, the land area in the cadastre and in the land registry or in the purchase contract may not differ by more than 5%. If this is the case with your property, we will be happy to put you in touch with an affordable surveyor to initiate a correction. Once a buyer has been found, the deed can be notarised without delay.
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Declaration of new construction (Declaración de Obra Nueva)
It sometimes happens that buildings for sale are either not registered or not fully registered. However, for a sale to go ahead, all parts of the building must be registered. We are happy to assist you with the legalisation process and can refer you to appropriate certified surveyors or architects.
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Certificado no espacio natural protegido
This certificate from the relevant town hall ensures that the property being sold is not located in a nature reserve. This document must not be more than six months old at the time of sale. If your property is located in a nature reserve, the municipality has a right of first refusal.
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IBI (Impuesto sobre Bienes Inmuebles)
Upon sale, proof must be provided that the annual property taxes/municipal taxes have been paid and that there are no outstanding tax liabilities.
STEP-BY-STEP SALES PROCESS:
Once the prospective buyer has decided to purchase your property, we recommend that you attend a notary appointment together with us and the potential buyer to clarify any final issues that need to be resolved in advance so that the notary can prepare the purchase agreement without delay. In our experience, this joint meeting with the solicitor is a good basis for initiating a smooth purchase process.
Preliminary contract (CONTRATO DE ARRAS):
We recommend that you always sign a preliminary contract with the prospective buyer, even if only a relatively short period of time is expected to elapse before the purchase. A verbal purchase commitment from the prospective buyer can very quickly turn into a cancellation. With a preliminary contract, the commitment becomes binding, also due to the deposit of 10% of the purchase price that must be paid. We never reserve a property without a deposit.
As your estate agent, we will be happy to explain how this contract works and what important information it contains.
The preliminary contract is concluded directly between the buyer and the seller. As your estate agent, we draw up this contract for you in a legally secure manner, mediate between you and the potential buyer in all questions and requests that arise, and also translate it if necessary, so that this preliminary contract and the 10% deposit then ensure a happy sale at the end.
The preliminary contract contains the buyer's details, the seller's details, details of the property, the amount of the deposit to be paid, the term of the contract and the latest date for the notary appointment.
As a rule, the term of the preliminary contract is three months – but this is negotiable between the parties. The deposit to be paid is usually 10% of the purchase price, which is due upon signing the preliminary contract.
Once you have signed and paid the deposit, your property is reserved and can no longer be sold to anyone else.
One more note: if the prospective buyer withdraws from the contract or fails to attend the notary appointment (without extending the contract) within the agreed period, their deposit is forfeited. This means that you can keep the deposit as compensation for the lost time and your house can be sold again. Conversely, if you as the seller withdraw from the sale, you must repay the prospective buyer their deposit and the same amount again as compensation.
NOTARY APPOINTMENT:
We organise the notary appointment for you and the buyer.
Before the notary appointment takes place, we check the draft of the notarial deed of sale (ESCRITURA DE COMPRAVENTA) for plausibility and send it to you afterwards so that you can form your own opinion in advance.
Of course, we will also accompany you during this final step and assist with any translations that may be necessary.
The notary is responsible for the correct drafting of the purchase contract and for the legal processing of the sale, ensuring that the sale is conducted in accordance with the laws and regulations. He certifies the signing of both parties at the appointment.
All owners must be present in person at the notary appointment and identify themselves with a valid identity document in order to sign the contract. Representatives can be appointed with a notarised power of attorney (in Spanish). We are happy to assist you with any questions you may have regarding the granting of power of attorney.
By the way: we also sell on behalf of clients with a power of attorney, so you don't have to travel.
Upon signing the ESCRITURA DE COMPRAVENTA, i.e. at the notary appointment, the purchase price is paid in full (minus the deposit paid under the CONTRATO DE ARRAS) and the keys to the property are handed over.
Payment of the purchase price is usually made during the appointment, either by online transfer and forwarding the transfer confirmation to the notary (who then attaches this confirmation to the ESCRITURA DE COMPRAVENTA) or by handing over a bank cheque from a Spanish bank.
Please do not hesitate to contact us if you are unsure. We will help you to clarify any obstacles in advance.
TAXES:
We will inform you about tax aspects that may be relevant when selling your property, such as capital gains tax, withholding tax (retención a cuenta) and tax on the increase in value of land (plusvalía).
We will also be happy to refer you to a tax advisor so that you can sell your property as favourably as possible from a tax perspective.
Important taxes you should be aware of:
Capital gains tax (Impuesto sobre las Ganancias)
Capital gains tax is calculated on the profit made, which is the difference between the sale price and the original purchase price of the property. The tax rate can range from 19% to 24%, depending on various factors such as the amount of profit made and the seller's personal tax situation.
However, there are certain circumstances under which the seller may be exempt from this tax. For example, if the proceeds from the sale are reinvested by purchasing a new property in Spain. In such cases, a tax exemption or tax reduction may be granted.
Withholding tax (Retención a cuenta):
If you are not a tax resident when selling a property in Spain, i.e. you are considered a ‘no residente fiscal’, 3% of the purchase price paid to you by the buyer will generally be withheld and paid to the Spanish tax authorities on your behalf. However, the 3% withholding tax is not the final tax amount, but a provisional estimate/advance payment. In your income tax return for the following year, the actual tax amount must be determined and offset against the 3% paid. If the 3% withheld exceeds the actual tax liability, you will receive a refund of the difference from the Spanish tax office. If the actual tax exceeds the 3% withheld, you must pay the difference.
Tax on the increase in value of land (Plusvalía):
The Plusvalía is a tax levied by the local council on the sale of a property and relates to the increase in value of the land. It is generally payable by the seller. We recommend checking with the local council before selling.
WHAT WE VALUE MOST:
We guarantee absolute discretion and confidentiality throughout the sales process. We only share your personal data and information with potential buyers who have a serious interest in your property.
We will keep you informed about the progress of the sales process and provide you with regular updates on new developments.
Open, honest and transparent communication is a central component of our business philosophy.
Terms and conditions for the sale of your property through us:
Agency fee: 3% of the purchase price plus I.G.I.C. (Canary Islands VAT)
Half of this total commission of 3% (= 1.5% plus I.G.I.C.) is payable upon conclusion of a preliminary contract (Contrato de Arras), the other half (= 1.5% plus I.G.I.C.) upon conclusion of the notarised purchase contract.
Contact us today to arrange a personal appointment and learn more about our services.
We look forward to helping you successfully sell your property on La Palma!
Do you have any questions or would you like to sell your property?
Simply send us a message via WhatsApp, Telegram or email!
Phone: (+34) 646 40 58 49
Mail: info@mi-casa-en-la-palma.com
