How can I sell my home to foreign buyers?

Advantages of selling property to foreign buyers

Selling property to international buyers not only expands your chances of finding the ideal client but also offers several benefits worth considering:

Access to higher-purchasing-power markets

Many international investors have greater capital to invest than local buyers. Factors such as differences in the cost of living between countries or favorable exchange rates often contribute to this. As a result, selling your home to foreign buyers can yield higher financial returns.

Demand in urban or tourist areas

Highly developed urban centers and tourist hotspots are among the most popular locations for international investors looking to purchase property in Spain. Consequently, it is often easier to sell a home to these buyers, who already have a natural interest in such locations.

If your property is in a historic city, a coastal town, or an area with a pleasant year-round climate, it is likely to attract more interest from foreign buyers.

Interest in second homes or vacation rental investments

Many international buyers invest in Spanish properties for use as a second home or as a vacation rental to generate passive income.

If your property is perceived as a unique opportunity for these purposes, investors will show greater interest in acquiring it.

Which international investors are buying homes in Spain?

Although many foreign investors are interested in purchasing property in Spain, certain nationalities consistently dominate the market, albeit with some fluctuations. According to data from the Colegio de Registradores, the most active foreign buyers are:

• United Kingdom (8.37%).

• Germany (6.98%).

• Morocco (6.10%).

• Romania (5.31%).

• France (5.22%).

As mentioned earlier, urban centers and coastal areas tend to be the most sought-after locations. The most popular regions for international buyers, according to the same source, are:

• Balearic Islands (33.4%).

• Canary Islands (31.1%).

• Valencian Community (28.8%).

• Murcia (23.6%).

• Catalonia (16.1%).

• Andalusia (13.7%).

Taxes on selling property to foreign buyers

Selling a house in Spain to international investors does not affect the applicable taxes, as the same ones apply as when selling to a domestic buyer. These are the taxes you will need to consider:

• Personal income tax: You must declare any profit made from the sale of your home. If you incur a loss, you should also report it, as this can be offset against capital gains for that tax year.

• Municipal capital gains tax: This tax must be paid only if the urban land value has increased.

• Property tax: The property owner must pay this annual tax. However, in many cases, the payment is split between the buyer and the seller, depending on the date of sale.

If you want to learn more about the necessary procedures for selling property to foreign buyers, Engel & Völkers is here to assist you.

How to prepare your home for international buyers: tips for selling property to foreign investors

To attract foreign buyers, it is crucial to prepare your home properly. Here are some useful tips to help you sell your property to international buyers.

Apply home staging

The home staging technique is essential for selling property to international buyers, as it speeds up the process. This strategy involves decorating the home in a neutral style that highlights its best features and appeals to a broad audience.

To achieve this, remove personal items and use a cohesive, aesthetically pleasing decoration that enhances the property’s appeal.

Take high-quality photos of your property

Once your home is properly staged, it is time to capture high-quality photographs that showcase its full potential. Professional-quality images are crucial, as first impressions matter, especially for international buyers. Engel & Völkers agents can assist you with this process.

Gather the necessary documents for selling property to foreign buyers

What documents are required to sell your home to an international investor? Below is a list of the key documents needed for the transaction:

• Title deed: A legal document proving homeownership, which must be registered with the Property Registry.

• Simple note: A certificate providing an official description of the property and ownership details.

• Recent tax and utility bills: Proof that all payments are up to date.

• Energy certificate: Essential for assessing the property's energy efficiency.

• Zero debt certificate: A document confirming there are no outstanding debts.

• Occupancy certificate: Confirms that the property meets legal habitation requirements.

• Community fee clearance certificate: Certifies that all homeowners’ association fees are up to date.

• Deposit agreement: A contract outlining the terms and conditions of the sale.

Get your property appraised

Before selling your property to foreign buyers, it is essential to know its value. Conducting an appraisal will provide you with the necessary data to set a fair price or adjust the value if needed.

At Engel & Völkers, we offer free property valuations to make the process easier for you. Simply contact us, and we will take care of everything.

Research the international market

Once you have gathered all the required documents, it's time to identify your ideal buyer. Understanding their preferences and priorities will help you craft an attractive property listing.

At Engel & Völkers, we publish an annual report that tracks real estate trends, including transactions involving international investors in Spain. This valuable resource can help you align your property listing with current market demands.

Create an effective property listing

Once you have a clear understanding of your potential buyer’s needs, write an appealing property listing to capture their attention. Be sure to highlight the property’s best features and include high-quality images.

Thanks to advancements in technology, including Artificial Intelligence, this process can now be streamlined for greater efficiency.

Advertise on international real estate portals

After drafting your listing, translate it and choose the best international real estate platforms to promote your property. This will ensure your listing reaches foreign buyers looking to invest in Spain.

Leverage your network

Attending social clubs and leveraging word-of-mouth recommendations can accelerate the sale of your home. A strong network can help you connect with potential buyers more efficiently.

Seek professional assistance

Handling the entire sales process can be overwhelming, especially without prior experience or the necessary skills. In such cases, working with a reputable real estate agency is the best option.

At Engel & Völkers, our expert real estate agents specialize in international property sales. With over 800 offices across 34 countries, our premium brand offers a vast network of international contacts that you can benefit from.

If you want to sell your property to foreign investors quickly and efficiently, reach out to us, and we’ll guide you through the process.