Selling and buying at the same time
Sell first or buy first? How to coordinate both transactions, the dates and the finance, and the tax advantages of reinvesting in your new home.
Before you start
Moving home means selling one property and buying another. Two transactions that, ideally, should happen at the same time. And they almost never do on their own.
The question every owner in this situation asks me is the same: do I sell first or buy first? Here are the advantages and risks of each option, how to coordinate dates and finance, and how to make the most of the tax advantages of reinvesting.
A summary of my guide Vender y comprar a la vez (in Spanish, with full detail and a downloadable PDF).
Sell first or buy first?
There is no single answer: it depends on your finances, the market and your appetite for risk. These are the three strategies:
Sell first
- You know exactly how much money you have
- You negotiate the purchase from strength
- Risk: needing temporary accommodation
Buy first
- You secure the house you want
- A move without rushing
- Risk: paying for two homes or selling in a hurry
Both at once
- The ideal option
- No temporary home or double payments
- Requires coordinating dates in detail
In most cases, my advice is to sell first, or at least to have the sale well advanced, before committing to the purchase. Selling in a hurry usually costs more than temporary accommodation.
«Those who sell calmly sell better. And those who sell first buy from a stronger position.»
First of all: the numbers
Before looking for a new home, it pays to know exactly what you have to work with:
- 01
What you will get from the sale
A realistic price, minus the outstanding mortgage, municipal plusvalía, income tax and selling costs.
- 02
What you can finance
How much a bank would lend you for the new home, based on your income, age and debts.
- 03
What buying will cost
The price, plus purchase taxes and costs, which in Madrid usually range from 6 % to more than 11 %.
- 04
The transition costs
Removals, temporary accommodation if you need it, storage and, perhaps, a few months of double costs.
«With the numbers clear, the decision on what to do first almost makes itself.»
If you sell first
It is the safest option. To avoid being left without a home between the sale and the purchase there are several formulas:
- Deferred handover: the sale is signed and handover of the property is agreed for a few weeks or months later.
- Deposit contract with a long timeframe: agree with the buyer a completion date that gives you time to find a home.
- Renting back from the buyer: after the sale, you stay in the house for a few months paying an agreed rent.
- Temporary home: a short-term let while you buy.
All these options should be negotiated from the start and set out in writing in the deposit contract (contrato de arras). Selling first also lets you approach the seller of your new home as a solvent buyer with no conditions, which strengthens your negotiating position.
«With a good contract, selling first does not mean ending up on the street.»
If you buy first
It makes sense when the ideal home comes up and you do not want to lose it, or when your finances can absorb a period of double costs. The most common formulas:
- Savings: paying the deposit on the new home from savings and selling later without rushing.
- Bridging loan or move-home mortgage: some banks finance the new home while the old one is sold, sometimes with reduced repayments for a while.
- Deposit contract with a long timeframe: reserving the new house with a completion date that gives time to sell the current one.
The big risk is having to sell in a hurry to cover two repayments. Before buying, work out how many months of double costs you could absorb if the sale takes longer.
«Buying first gives peace of mind to the buyer and urgency to the seller. And that seller is you.»
Doing both at once
It is the ideal and it is possible, but it requires coordinating both contracts precisely. A typical timeline:
- 01
Prepare and list your home
At a market price, to receive offers in the first weeks.
- 02
Look for your new home in parallel
With the budget already calculated and the finance studied.
- 03
Deposit contract on the sale
With a flexible completion date or a handover margin.
- 04
Deposit contract on the purchase
With a completion date on or after the sale.
- 05
Signing both deeds
Ideally on the same day or a few days apart, so the sale money goes into the purchase.
- 06
Moving
On the handover date agreed in both transactions.
«When both dates fit, moving home is a single move.»
The mortgage when moving home
- Your current mortgage is repaid with the sale money, normally at the same notary.
- For the new mortgage, the bank will take your current one into account until it is repaid.
- If you buy before selling, the bank will assess whether you can afford both repayments, or offer you a move-home formula.
- The binding offer must be delivered at least 10 calendar days before signing.
That is why it is worth speaking to the bank before signing any deposit contract.
«When moving home, the mortgage sets the pace. It pays to know it before you start.»
The tax advantage of reinvesting
If you sell your main home at a gain and reinvest the money in another main home, that gain may be exempt from Spanish income tax. The main requirements:
| Requirement | Detail |
|---|---|
| Main home | Having lived there for at least 3 continuous years, except for justified reasons |
| Reinvestment period | Two years before or two years after the sale |
| Amount to reinvest | The sale proceeds, minus the outstanding mortgage that is repaid |
| Partial reinvestment | If you reinvest only part, the exemption is proportional |
| Declaration | It must be stated in the income tax return for the year of the sale |
In addition, people over 65 who sell their main home do not pay income tax on the gain, whether or not they reinvest.
Municipal plusvalía is still payable on the sale, unless there has been no gain. Your tax adviser should confirm your specific case.
«Reinvesting in your new home can save you a good part of the taxes on the sale.»
Common mistakes
MythI will find a house first and sell mine later.
FactWithout knowing your real sale price, the purchase budget is a guess.
MythI will list my house high; I can always lower it.
FactIf you need to sell within a timeframe, a high price at the start is the slowest route.
MythI will sign the deposit on the purchase and there will be time to sell.
FactIf you do not sell in time, you can lose the deposit. The dates must fit before you sign.
MythThe bank will finance both houses without any problem.
FactThe bank will take both debts into account. It needs to be studied beforehand.
MythBetter to have different agencies handle each transaction.
FactCoordinating two transactions needs a single timeline and someone who sees both.
How I can help
I can support you through both transactions, so that the sale and the purchase move forward on a single timeline.
- 1Valuation and sales strategy
- 2Calculating what you will get from the sale
- 3Finding your new home as a property finder
- 4Coordinating deposits and dates
- 5Guidance on finance
- 6Support at both notaries
In the sale, I defend your interests as the owner. In the purchase, I can act as your property finder (personal shopper inmobiliaria), with a signed engagement and fees agreed in advance, searching and negotiating only for you.
«I don't sell, I advise.»
Frequently asked questions
Is it better to sell first or buy first?
In most cases, sell first, or have the sale well advanced before committing to the purchase: you know what you have to work with and you negotiate from strength. Buying first makes sense if the ideal home comes up and you can absorb a period of double costs.
How do I avoid being left without a home if I sell first?
By agreeing in the deposit contract a deferred handover or a long completion date, staying on for a few months renting the house you have sold, or with a short-term let while you buy. Everything should be negotiated from the start and put in writing.
What is a bridging loan or move-home mortgage?
A formula with which some banks finance the purchase of the new home while the old one is sold, sometimes with reduced repayments for a while. The bank will assess whether you can afford both debts.
Do I pay income tax if I sell my home to buy another?
If you sell your main home at a gain and reinvest the proceeds in another main home within the two years before or after, the gain may be exempt, fully or proportionally. People over 65 selling their main home do not pay tax on the gain, whether or not they reinvest. Municipal plusvalía is still payable.
General information, updated in November 2026 under the rules of the Community of Madrid and Spanish law. It does not replace advice from your lawyer or tax adviser on your specific case.
Shall we talk about your move?
I will prepare a market analysis of your home and a calculation of what you will get from the sale, with no obligation, so you can decide the order with figures.