According to data from idealista, the average price of existing homes in Spain rose by 12.8% year-on-year in May, hitting a historic peak of €2,391 per square metre. Despite the spike, many buyers remain active in the market—partly driven by recent interest rate reductions from the European Central Bank, which have lowered borrowing costs to around 2%.

This optimism is reflected in a modest uptick in home sales: April saw 53,589 transactions, a 0.4% increase compared to the previous year, based on preliminary data from the College of Registrars. As demand surges, properties are often snapped up within days. Yet for those selling, speed can backfire—leading to costly missteps and diminished profits.

💼 Preparing Your Home for Sale: Essential Documents

Before listing your property, ensure you’ve gathered the required paperwork:

• Energy Efficiency Certificate: Mandatory since June 2023. Issued following a site visit by a qualified technician; cost ranges from €60 to €130.
• Nota Simple: Verifies there are no encumbrances on the home; available online for €9.20.
• Occupation Licence: Certifies the property is safe and habitable. Fees range from €60 to €160.
• Mortgage Cancellation: If the property is mortgaged, it must be paid off prior to sale. Expect fees between €400 and €500.

💸 Understanding Your Tax Obligations

Sellers may be liable for the following taxes depending on circumstances:

Capital Gains Tax (IRPF)
Levied on profits from the sale:

Exemptions apply if:

• Profits are fully reinvested into a permanent residence.
• Seller is over 65 and the home is their primary residence.
• Seller is a dependent individual.

Municipal Capital Gains Tax (Plusvalía)
Charged by local councils based on the property's value increase since purchase. Rates vary by municipality.

🚫 Avoiding Common Seller Mistakes

Selling property is often a once-in-a-decade event. It’s easy to overlook updated regulations or miscalculate expenses. Expert advice is key.

🔍 Frequently Overlooked Costs:

• Annual Property Tax (IBI): If you're the registered owner on January 1st, you're responsible for that year’s tax—unless you’ve negotiated otherwise with the buyer.
• Notary Fees: Cancelling a mortgage involves signing a deed with a notary, which may cost up to €500.
• Agency Fees: Commission fees depend on the agreement with the real estate agent and may be paid by the buyer or seller.

📑 Checklist of Supporting Documents

To ensure a smooth sale, have these documents ready:

• Energy Certificate
• Nota Simple
• Homeowners’ association payment certificate (if applicable)
• Association bylaws, service contracts, floorplans, original property documents
• Certificate of IBI payments
• Utility bills (water, electricity, gas)