Guide to Selling a Luxury Property in Spain

Whether you no longer have a need for your luxury Spanish property, want to move on to new and exciting investments or simply believe it is the right time to sell, putting your property back on the market does not need to be an overwhelming, complicated process.

Selling a luxury home doubtlessly requires a different approach, but with the right knowledge and assistance from experts in real estate, you can easily turn your sale into a success.

Where do I begin?

Timing plays an important role in every house sale. Selling a luxury villa at a specific time of the year, for instance in the months leading up to summer, may be particularly beneficial, attracting buyers looking for the perfect holiday home in Spain.

Similarly, you should consider the state of the housing market prior to putting up your property, so keeping up to date with variations in sale prices and demand is a must.

With demand for properties predicted to remain stable in the Spanish market between 2022 and 2023, and house prices expected to only rise by 1% in 2023, sellers may benefit from a market full of interested buyers while still generating significant profit.

Pricing your luxury property correctly from the beginning is essential, yet finding the right balance may be tricky. For instance, setting a really high price for the property may be a mistake, discouraging buyers from the onset. Vice versa, pricing a house too low may not provide the return on investment you seek.

With significant experience selling houses of comparable value, real estate agents specialising in luxury homes can conduct comparative market analyses, determining what the right price for your property should be and ensuring your financial needs are met.

Preparing your home for sale

Effective marketing is key to the sale of any luxury home. This chiefly involves creating a unique ‘brand’ for your home, that is, a distinct identity that will help buyers build a connection with the property that resonates with them.

For a luxury home, this should be done by selling the lifestyle that comes with it. For instance, a luxury villa located in a gated community would come with increased security, exclusive amenities, and communities of like-minded individuals, all of which should distinctively come across in all marketing and advertising activities pre-sale.

Producing quality pictures, videos and virtual tours will require ‘staging’ your luxury home, an essential part of this process. Carefully placing the right accessories in a villa with a large pool and outside area, such as a BBQ, a charming gazebo and the perfect patio furniture can help buyers picture their life in the villa, envisioning their favourite activities.

Luxury properties attract a very specific kind of buyer. By determining who the target buyers are and what their needs and desires may be and marketing the property accordingly, you can increase your chances of completing a sale successfully.

Due to the many intricacies of this process, working with a dedicated real estate agent capable of assisting you through this process can be of particular help.

Everything you need to know about taxes and paperwork

To ensure your house is ready for sale, you will need to prepare the necessary documents. These include the title deeds to the property, an Energy Performance Certificate, utility bills, receipts for the local municipal property tax and a list of items that you’d like to include in the sale, amongst other things.

Non-residents selling their property in Spain will also need to take into account the cost of the capital gains tax, the Plusvalía tax and income tax provision.

It is important to remember that, as a UK citizen, the capital gains you receive from the sale of any assets in Spain now have a fixed-rate tax of 24%, compared to 19% before the UK’s exit from the EU.

The cost of the Plusvalía tax will vary based on the market value of a property, while income tax provision requires non-residents to pay a 3% retention of the selling price to the Spanish Tax Office.

Do you need help selling your Spanish property?

With access to a reliable network of interested buyers and experience selling a variety of luxury villas and apartments, the team at Andrew Brown has the skills and expertise needed to sell your property to the perfect buyer.

Offering a personal touch and approach, our team has extensive experience staging luxury properties and marketing them to the right audiences, ensuring all your boxes are ticked prior to any transaction.

To get in touch with a team with in-depth knowledge of the market that help you obtain the best possible return on investment, complete our selling form today.

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