Good legal advice is an important part to selling a property anywhere and just as important in the Canaries. GoldAcre Estates will help you understand the legal process of selling your home. Although it is not necessary to employ the services of a lawyer, (Abogado), when selling property in the Canaries (many local purchasers, who feel confident in handling the paperwork and the officials themselves with the help of GoldAcre Estates, do not use a lawyer) you may find that it will be a good idea to use one, especially for the convenience that they will to do everything for you. Some vendors might opt for the services of an accountant (Gestoria) instead, especially if they are non-residents and could claim part of their tax retention back. If you decide to use a lawyer, or the sale requires the use of a lawyer, GoldAcre Estates can recommend a number of respected lawyers and accountants who we have worked closely with, over many years and have found to be efficient and diligent. These lawyers are completely independent of GoldAcre Estates and of course you are free to use any lawyer or accountant you choose. A "Power of Attorney" can be given to your lawyer so that you do not have to attend the notary for the exchange of title. It is not advisable to give a POA to anyone other than your lawyer, spouse or a person you trust implicitly. When a buyer agrees to purchase your property the buyer will be required to sign a 'Reservation Contract'. At GoldAcre Estates lwe provide it in Spanish and English. At the time of reserving the property we will advise you and the buyer as to when the 'Purchase Contract' should be signed, usually about 28 days after signing the reservation contract. If English is not your first language we will endeavour to translate the contract through your lawyer. This 28 day period allows the buyers lawyer to complete initial searches and ensure there are no outstanding debts on the property. Formal 'Completion and Exchange' is carried out in front of a Notary and at this time the final payment for the property is made and the property passes to the new owner. The title deed will be sent to the Land Registry in the new owner's name. This is a brief insight into the legal system for selling property in the Canaries and we would be happy to explain more in depth or put you in contact with a reputable, qualified lawyer. For more information please contact us on 0034 928 53 50 44 or emaail firstname.lastname@example.org
Tax Guide for Canaries
· Capital Gains Tax
Is due on the sale of a property and is calculated on the difference between value of the property when it was purchased and the official value at the time of its sale, i.e. the profit. The tax rate for Capital Gains tax at the moment is 19%. And from there there is a scale please contact our valuation team for further details. Some capital expenditure on the property while you have owned it can be offset against the Capital Gains Tax. This could potentialy include things such as extensions, improvements etc. An accountant can advise you as to how what you can claim and how.
This is a tax charged, as a percentage, on the increase in the land value the property occupies since the previous sale.This tax calculation is based on the Catastral Value of the property
· Taxes Paid by Non Residents and Tax Retention
These are applicable if you are not a Spanish resident when you sell your property in the Canaries. The buyer or their legal representative will be obliged to retain 3% of the sale price from the vendor and pass this money on to the Tax Office.
After you have presented a tax declaration your tax liability can be assessed, when this is complete you may be refunded a portion of the tax retention or possibly asked to pay the difference if your tax liability is more than the retention. This procedure was put in place by the Spanish and Canarian governments to prevent non-residents from leaving Spain without paying the Capital Gains Tax
Please remember that although we have taken the best advice to prepare this guide on taxes, GoldAcre Estates are not tax experts and accept no liability for the accuracy of this guide published as taxes can change, the most up to date advice should be sought from a Lawyer or an Accountant trained in Canarian tax law.
GoldAcre Estates can recommend independent, qualified experts on Canarian Tax Law who through their knowledge can help you save money on taxes.