By Richard Way
British and other foreign vendors in Spain are being urged to familiarise themselves with the local conveyancing process as well as the implications of being a non-resident seller, in order to benefit fully from the growing resurgence of foreign buyers in the country.
Crucially, the percentage of Spanish property sales to foreigners doubled between 2024 and 2023, according to recent figures from Spain’s College of Property Registrars. Thirty-three per cent of all property sales last year in the Alicante province, the heart of the Costa Blanca, were to foreigners.
“Our market is at the very least a European one, but it’s increasingly international,” said Kieran Byrne, who runs English speaking Costa Blanca estate agency HomeEspaña. “For a foreigner, selling a Spanish property, whether it’s a primary residence or holiday home, comes with different considerations to the ones you would have when selling your primary residence, for example, in the UK. For starters, there’s a high chance your property will attract non-resident buyers, especially as foreign buyers constitute such a significant portion of the market on the Costa Blanca. Then, for example, you have to think about currency and repatriating funds.”
Vendors looking for guidance could start with this five-point checklist:
1. Be realistic about price, especially if you want a quick sale, and remember that as a private vendor, your property could be competing with bank repossessions on price. Anticipate completion to take six to eight weeks from the point of accepting an offer, however if you have a cash buyer who is happy with the paperwork, you could have a sale wrapped up within two weeks.
2. Agency fees in Spain vary, depending on the estate agency. It could be an agreed rate of commission paid on the purchase price, sometimes also by the buyer. Another typical model is an estate agency agreeing to achieve a certain price for a vendor and then adding their fees to that price when they advertise the property. For example, as a vendor wanting €100,000 from the sale of your property, you might see it advertised for €105,000-€110,000 – the difference is your agent’s fee. So long as all parties are aware of the fee structure, including the buyer, there should be no disagreements.
3. Usually, it’s best to include all furniture and appliances in the sale of your property, unless you are a resident in Spain and moving into an unfurnished home nearby. Even if you are moving back to the UK, the cost of bringing things with you, and possibly having to store them, isn’t usually worth it.
4. Don’t waste money unnecessarily when repatriating the proceeds of your property sale to the UK. Too many vendors are not aware of the hidden costs that come with transferring money to a UK bank from a Spanish one, until it’s too late. Asking your Spanish bank to exchange euros into pounds and deposit them in your UK bank account will mean you get stung by a transfer fee, typically around one per cent of the value of the transaction, then by a poor exchange rate. Instead, use a currency exchange specialist, such as Smart Currency Exchange, to transfer money between your Sterling UK account and euro Spanish account.
5) Be mindful of any fees and capital gains tax that will be deducted from the proceeds of your sale. Even if no capital gain tax is owed, as a non-resident vendor your notary will take a 3 per cent withholding tax, which can be reclaimed using a tax representative in Spain.
Richard Way, is editor at the Overseas Guides Company (OGC). You can see their Spain buying guide here.
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