Selling a property in Spain, the timeline from listing to deed

Terms used

• Plusvalía — The plusvalía is the local tax on the rise in value of urban land when a property is sold or inherited.
• Arras — The arras is the deposit contract signed with the buyer before the deed, usually 10% of the price.
• Plusvalía municipal — The plusvalía municipal is the town hall's tax on the land value gained while you owned the property.
• IBI — The IBI is the yearly property tax paid to the town hall.
• Nota simple — The nota simple is a Land Registry summary of the property, its owner and any charges.
• Certificado de deuda pendiente — The certificado de deuda pendiente is your bank's certificate of the mortgage balance still owed.
• Gestoría — A gestoría is an office that handles paperwork and filings with authorities for a fee.

Key rules

• Total time: Listing to deed typically takes 3 to 9 months.
• Arras wording: The type of arras depends on the contract wording, so check it says what you intend before you sign.
• Mortgage: You pay the cancellation costs of your mortgage, and the loan must be cleared at or before the deed.
• Plusvalía deadline: File the plusvalía municipal within 30 working days of the deed.
• Non-resident sellers: The buyer withholds 3% of the price for the tax office.

How long a sale takes

Expect 3 to 9 months from listing to deed. These are typical timings, not legal limits, and they vary by area and market. Most of the time goes on finding a buyer and on the gap between the arras and the deed.

Step 1: Prepare and list (1 to 2 weeks)

Gather your documents and photos before you list. The documents list below shows what you need. Order the energy performance certificate early, because you must provide it. Order the community debt certificate and a fresh nota simple early too.

Non-resident sellers: the buyer withholds 3% of the price and pays it to the tax office on your behalf. Plan for that in your cash flow.

Step 2: Find a buyer (usually 2 to 6 months)

This is the least predictable stage. Pricing and location decide it. If you hire an estate agent, you pay the agent's commission, because fees are due from whoever hired the agent.

Step 3: Accept an offer and sign the reservation (within days)

Once you accept an offer, the buyer signs a reservation and pays a deposit of a few hundred to a few thousand euros. The home is taken off the market while the checks are done.

Step 4: Sign the arras (1 to 4 weeks after the offer)

The arras is the deposit contract, usually 10% of the price. Check that the wording states the type you intend, because courts follow the wording. If the contract is not clear, courts often treat it as a withdrawal deposit: a buyer who backs out loses the deposit, and a seller who backs out returns it doubled. The decision below compares the three types. If your buyer drops out, read the "what if" below.

Step 5: Prepare for the deed (usually 1 to 3 months after the arras)

If you have a mortgage, do these things in this order:

1. Ask your bank for the payoff certificate (certificado de deuda pendiente).
2. Agree how the balance is paid: before the deed, or at signing with a cheque from the buyer's bank.
3. Arrange for the bank's representative to sign the cancellation deed before a notary, often on the same day or within days of the sale deed.
4. Have the bank or a gestoría file the cancellation at the Property Registry. This usually takes 2 to 8 weeks.

You pay the cancellation costs (notary, registry and gestoría fees, typically several hundred euros). The bank pays the stamp duty on the cancellation. Ask the notary which extra documents they need, such as marital status papers, a power of attorney or bank details for payment.

Step 6: Sign the deed and get paid

You and the buyer sign at the notary. Payment is normally by bank transfer or cheque, because cash is limited to small amounts. Community fees and IBI are shared up to the completion date. The buyer normally pays the notary and registry fees for the sale deed, plus transfer tax or VAT. The parties can agree a different split in the contract.

Step 7: Taxes after the deed

• Plusvalía municipal: you pay it, and you file it with the town hall within 30 working days of the deed.
• Income tax: declare the gain in your next income tax return if you are a Spanish tax resident.
• The buyer files their own transfer tax within 30 working days, and the registry entry follows within weeks. Tax deadlines and forms can vary by region, so check locally.

Choosing between options

Which arras type to sign

Which type of arras should you sign with the buyer?

• Withdrawal deposit (arras penitenciales): Choose it if you want either side to be able to walk away: the buyer loses the deposit, or you return it doubled.

• Confirmatory deposit (arras confirmatorias): Choose it if you want a binding sale from signing: nobody can withdraw, the deposit counts toward the price, and a party in breach can be forced to complete or pay damages.

• Penalty deposit (arras penales): Choose it if you want the deposit to act as a penalty, with the injured party free to claim completion or damages.

The contract wording decides the type, so name it clearly. If the contract does not say otherwise, courts often treat the deposit as a withdrawal deposit.

Plan your sale dates and tax payments

Your sale from listing to tax filing

• Gather documents and photos, then list the property: 1 to 2 weeks before listing

• Market the home until you accept an offer: commonly 2 to 6 months, depending on area and pricing

• Sign the reservation deposit with the buyer: within days of accepting the offer

• Complete the checks and sign the arras contract (the deposit contract, usually a 10% deposit): 1 to 4 weeks after the offer

• Get the mortgage payoff certificate if you have a loan, and prepare for the deed: usually 1 to 3 months after the arras

• Sign the deed at the notary and receive payment: 3 to 9 months after listing, in a typical sale

• If you are a Spanish tax resident, declare the gain in your income tax return: in the spring after the year of sale, usually early April to 30 June; pay in full when filing, or 60% by 30 June and 40% in November

• If you are a non-resident, file modelo 210 for the final tax on the gain: within 3 months of the sale

• If you are a non-resident, check that the buyer pays the 3% they hold back to the tax office: within one month of the deed; the 3% is credited against your final tax, and any excess can be refunded to you

Documents you need

• Valid ID, NIE or passport, issued by the authorities of your country or Spain.

• Your title deed (escritura de compraventa), the deed by which you bought the property.

• A recent nota simple, the summary of the property's entry, from the Land Registry.

• The latest IBI receipt (the yearly property tax), issued by the town hall.

• A certificate from the community of owners showing you have no debt, issued by the community administrator.

• The energy performance certificate for the property.

• If you have a loan, the mortgage payoff certificate (certificado de deuda pendiente) from your bank, plus the cancellation documents.

• The habitability certificate, only where your region requires it.

• The community statutes or the building inspection report (ITE), where they apply to your building.

• Marital status documents and any power of attorney, if someone signs for you or your marital status matters for the sale.

• Your bank account details for payment, and the plusvalía data the notary may ask for. Cash is allowed only for small amounts, so payment is by bank transfer or cheque.

Checklist

• Gather your ID, title deed, nota simple, latest IBI receipt and community debt certificate in the first 1 to 2 weeks, before you list.

• Sign the reservation deposit within days of accepting an offer.

• Check the arras wording so it states the type you intend, then sign it 1 to 4 weeks after the offer.

• Ask the bank or a gestoría to file the cancellation at the Property Registry and confirm the charge is removed.

• Ask the notary which extra documents they need before the deed date.

• Bring your ID and bank details to the notary and sign the deed.

What if your buyer pulls out after the arras?

If your buyer pulls out after paying arras, what you can keep depends on the type of arras in your contract. Check the type before you sign, because it is hard to change afterwards.

The three types

Arras penitenciales (withdrawal deposit). Either side can walk away, at a price. If the buyer backs out, you keep the deposit and can relist the property straight away. If you back out, you must return the deposit doubled. This is the default type.

Arras confirmatorias (part-payment). The deposit is part of the price and proves the sale is binding. Nobody has a right to withdraw. If the buyer pulls out, you can insist they complete the sale or claim damages, and the deposit counts towards the price. Because the sale is still binding, get legal advice before you relist.

Arras penales (penalty for breach). The deposit works as a penalty if someone breaks the contract. The side that is not at fault can demand that the sale goes ahead or claim damages.

What to do before signing

• Read the wording on the deposit, not just the heading. The type depends on what the contract says, and the label must match what you intend.
• If you want to keep the deposit and relist quickly when a buyer backs out, ask for the contract to say clearly that the arras are penitenciales. If the wording is unclear, courts often treat arras as penitenciales.
• Remember the doubled return if you are the one who withdraws. Do not sign this type if you might accept a better offer later.
• Have a lawyer read the deposit clause before you sign.

Frequently asked questions

How long does it take to sell a home in Spain from listing to deed?

Listing to deed typically takes 3 to 9 months. Most of that is finding a buyer, which commonly takes 2 to 6 months depending on area and pricing. After the arras contract, expect 1 to 3 months to reach the deed.

What happens if the buyer or I back out after signing arras?

If the contract is silent, courts usually treat the deposit as a withdrawal deposit: a buyer who backs out loses it, and a seller who backs out returns it doubled. Other types exist: with confirmatory arras nobody can withdraw, and with penal arras the injured party can claim performance or damages. The wording of the contract decides which one applies.

How long does it take to remove my mortgage from the Land Registry?

Registry cancellation of the mortgage commonly takes 2 to 8 weeks.

Who pays the notary and registry fees when I sell?

In practice the buyer almost always pays the notary and registry fees for the sale deed, by agreement, although the Civil Code puts them on the seller. You normally pay the plusvalía, any mortgage cancellation costs, and the agent's commission if you hired the agent. The contract can set a different split.