The property market can be uncertain; as a result, many Spanish homeowners face various issues, including negative equity, high community fees and unfinished developments.
Selling the property can be frustrating, costly and time-consuming, not to mention the outstanding shortfall you might face. Read our guide today and explore your options with EU Property Solutions.
Reasons for struggling to sell
Even at the best of times, there are more properties on the market in Spain than buyers, making selling a property difficult. In recent years, the demand has reduced further due to the COVID-19 pandemic and Brexit.
With reduced interest and decreasing property prices, many sellers are struggling to make the leap due to negative equity, which leaves many people with a shortfall they are liable for.
Selling with negative equity
One of the biggest misconceptions is that you cannot sell your Spanish property with negative equity; this isn’t true. Although possible, we highly recommend seeking professional advice before attempting this, as the process can become complicated.
If you choose this route, you will still be responsible for the full mortgage. After the sale, you will be billed for the shortfall, sale costs, taxes and any other fees that arise. The entire process can be daunting, but if it is managed in the right way, it can provide you with a great outcome when selling your property.
Make the right choice for you
Common advice is to sell your home below property value, but this of course means you are left with a shortfall as well as expensive fees.
Failure to make the right choice for you can affect your financial future, and you could be chased in the UK for the outstanding debt. Our UK-based team has helped hundreds of clients for over a decade to sell their Spanish properties, which are affected by negative equity.
Explore your options today by calling our team on 0330 124 1230 or email us at [email protected] to book a free initial consultation.
You will be liable for capital gains tax. This will be a percentage of the profit you make when selling your Spanish property. You will also need to pay PlusvalÃa tax which is the municipal tax on the increase in land value during ownership.
Yes, you can sell a Spanish property with negative equity, but the sale price may not cover the outstanding mortgage. You will remain liable for the shortfall unless an agreement is reached with your lender.
Yes all property owners in Spain are subject to property tax. The rate you pay is based upon the property location and local regulations.
