Selling a Property

Selling a property isn’t just about finding a buyer. It’s about pricing it right, presenting it well, and knowing what the tax bill looks like before you sign, not after. On the Costa del Sol, the sellers who do best are the ones who come prepared. So let’s walk through how this actually works.

Step 1, Get an honest valuation

There are three ways to approach this, and honestly, you probably want all three:

• Comparable sales analysis, your agent pulls the last 12 months of closed sales in your micro-market (same street, same complex, same typology).
• Asking-price analysis, what’s currently listed and at what price. Helps you understand who you’re competing with.
• Formal tasación, a bank-commissioned valuation for mortgage purposes. It tends to be more conservative, but it’s useful if your buyer needs finance.

Here’s the thing about the coast: asking prices and closing prices typically diverge by 5-15%. A property priced 10% above fair market can sit for 18 months gathering dust. One priced at market? That closes in 4-8 weeks.

Step 2, Get the legal paperwork ready

You’ll need all of these before you can even start marketing, let alone close a sale:

• Escritura de compraventa, your original purchase deed.
• Nota simple updated, a Land Registry extract dated within 3-6 months.
• IBI receipts, last 4 years, fully paid up.
• Community statement, certifying there are no outstanding community fees. This is required at completion.
• Certificado de Eficiencia Energética (CEE), mandatory to list for sale. Costs €150-€400 and is valid for 10 years.
• Licencia de Primera Ocupación (LPO), your habitation license.
• Cédula de habitabilidad, required in some municipalities.
• ITE / Informe Técnico del Edificio, for buildings older than 50 years.
• Community statutes + last minutes, the buyer’s lawyer will ask for these.
• Utility bills, last readings for handover.

A good lawyer or gestor can pull this dossier together in 1-3 weeks.

Step 3, Prepare the property to show well

On the Costa del Sol, listings compete visually. Your buyer is scrolling through 40-80 properties on their phone before short-listing 6-8 to actually visit. Photos and video carry about 80% of the weight. So make them count.

• Depersonalise, take down family photos, clutter, personal art. Neutral reads as move-in-ready to buyers.
• Deep clean, professional level, not a quick tidy. Pay special attention to grout, glass, and terraces.
• Fix minor defects, cracked tiles, chipped paint, broken handles. Every visible defect gets negotiated twice: once in your head and once in the buyer’s.
• Stage soft textures, plants, fresh flowers, light throws. Just don’t overdo it.
• Get professional photos + drone + 3D tour, this investment pays back immediately in first-impression quality.
• Shoot at golden hour, Costa del Sol light is flattering at 7-8am and 6-7pm depending on the season.

Step 4, Choose your agent strategy

Two approaches work. One doesn’t.

Exclusive listing with one good agent (works well)

You give a single agent a clear mandate, typically for a 4-6 month term. They invest in professional marketing and distribute your listing through the MLS to 400+ other agents who share the commission. You deal with one point of contact, and the MLS reach still gives you broad exposure.

Open listing across several agents (fine up to three, chaotic beyond)

Sharing a listing with two or three agencies can work perfectly fine. Past that, things start to unravel. With four or more agents on the same property, you’ll see it appear with different prices, different square metres, and inconsistent details across portals. That reads as disorganised to buyers. And you end up becoming the coordination hub yourself, fielding the same viewings and offers from multiple agents in parallel.

DIY / private sale

It’s possible, but you’ll miss the MLS network. For standard stock, it’s rarely worth the savings. For very specialised properties where you already know the niche buyer, it sometimes makes sense.

Step 5, Agent fees and what’s included

Here’s what’s standard on the Costa del Sol:

• 5% of sale price + VAT (21%), so roughly 6.05% all-in.
• The fee is paid by the seller at completion, out of sale proceeds.
• Typically that covers: professional photography, video, drone, 3D tour, floor plans, portal listings, MLS distribution, viewings management, negotiation, and coordination with lawyers and notary.

Step 6, Reservation → arras → notary

This is the mirror image of the buyer’s journey:

• Reservation (€6-10k) takes the property off the market for 2-3 weeks.
• Contrato de arras, the buyer pays 10%. If they walk away without cause, they lose it. If you pull out, you refund double, so 20%.
• Escritura at the notary, typically 4-8 weeks after arras. You hand over the keys and receive the balance via bank cheque.

Step 7, Tax on the sale, the bill most sellers forget

Capital gains tax (IRPF for residents)

You’ll pay progressive rates on the net gain:

• 19% on gains up to €6,000
• 21% on €6,000 to €50,000
• 23% on €50,000 to €200,000
• 27% on €200,000 to €300,000
• 28% above €300,000

Your acquisition cost basis is the original purchase price plus all the fees you paid at purchase (notary, registry, ITP, lawyer), plus any receipted capital improvements you’ve made during ownership. Keep invoices for every renovation, pool installation, kitchen overhaul, and extension. They all reduce your taxable gain.

For non-residents

• Flat 19% on the gain if you’re an EU/EEA resident, or 24% if you’re non-EU.
• 3% retention at completion, the buyer withholds 3% of the gross sale price and files Modelo 211 with the tax agency. Within 4 months, you file Modelo 210 to reconcile. If the 3% wasn’t enough, you top up. If you owe less, you claim a refund.

Plusvalía municipal

This is a local tax on the increase in urban land value during your ownership. You pay it to the ayuntamiento within 30 days of the deed. The amount varies by municipality and years of ownership, but for standard residential it’s typically €500 to €5,000. Since 2022, sellers can choose the lower of (a) the statutory formula or (b) the real gain, or opt out entirely if there’s no gain at all.

Exemptions and reductions

• Over 65s selling their habitual residence are fully exempt from IRPF capital gains.
• Reinvestment in another habitual residence within 2 years fully exempts the gain (residents only).
• Properties purchased before 1994 have transitional reduction coefficients still in effect.

↑ See what you take home  |  Source: Agencia Tributaria

Common mistakes

• Overpricing “just to test the market.” You kill the first-4-week buzz, which is exactly when the serious buyers are looking. Price right, not high.
• No energy certificate before listing. It’s illegal, and portals will filter you out.
• Listing with too many agents. It dilutes your marketing and confuses buyers.
• Not keeping renovation receipts. Every undocumented improvement costs you 19-28% when you sell.
• Ignoring community meeting timing. A pending derrama (special levy) disclosed after arras can blow up the deal or trigger renegotiation.
• Underestimating the 3% retention. Non-resident sellers sometimes budget the full sale price as net. It isn’t.

A realistic timeline

• Legal dossier + photography + listing: 1-2 weeks.
• Average time on market (well-priced coastal property): 3-6 months.
• From accepted offer to notary: 6-10 weeks.
• Full end-to-end: 5-10 months typical.