Selling Real Estate Property in Spain: Tax implications and advice

Let’s have a look at the COSTS next.


Broker’s commission

The typical commission rate for real estate agents on the Costa del Sol is between 4% and 6% Plus IVA. Or you could advertise privately with property platforms like Esales Property who specialize in marketing to buyers from all over the world meaning you pay no commission.


Fee for a lawyer.

Lawyers’ usual fees for counselling clients during the full process of selling a property in Spain range from 1% + IVA to 2% + IVA on the sale price. Like us, several law firms provide lower fees when the sale price is high. A lawyer should be consulted early on in the sale process. They’ll let you know upfront how much they charge and provide you with pertinent information such as tax rates, etc.


Energy Performance Certificate:

Since 2013 in Spain, this requirement must be satisfied before putting your home on the market. Without this Certificate, you might be penalised if you put your home on the market for sale or long-term rental. A one-bedroom apartment costs between 80 and 180 Euros, while a villa costs 180 and 300 Euros. This is something that your real estate agent can take care of for you.


Costs associated with a mortgage’s termination.

When selling a house, even if you paid off the mortgage years ago, you must ensure that the charge on the property has been removed from the Property Registry. You’ll need to set up around 800,00 Euros for Notary and Land Registry expenses. Be aware that even if your mortgage has been repaid, you still need to remove the charge from your property’s Land Registry, and the bank will not do so unless you request them to.


All residents must pay their share of taxes

A fiscal residence certificate is required to avoid the 3 percent retention charge if you are a resident of Spain. This does not change that you will have to pay capital gains tax. However, several factors have a role in how much you end up paying:

  • You must have been a state resident for at least three years to be liable for capital gains tax.
  • How long have you owned the property, and whether or not it is your primary residence?
  • If you’re above 65.
  • To see if this property will be used as your primary home.

Spanish taxes are paid a year in arrears, so please keep this in mind. You will still be required to file a tax return in May or June of the following year. Your property selling information will be entered into this form.


The plusvalía tax

The plusvala tax should be taken into account when selling Spanish real estate. It’s easy to ignore this tax because it’s a peculiarity of the Spanish system. However, this fee must be considered because it applies to both citizens and non-residents. According to the location and the period the seller has held on to the property, the price to pay might vary.


Taxes imposed by the town hall are known as plusvalas. Calculated by taking the land’s rateable value (valour suelo) and multiplying it by the number of years that have gone since it was last sold. The goal is to tax the rise in land value, part of which will be attributable to improvements made by the local government and the community. Even if you live in an apartment, you’ll still have to pay this tax because the complex is built on a certain proportion of land.


The tax and legal ramifications of selling property in Spain

It can be difficult to handle the tax and legal ramifications of selling property in Spain on your own. Hiring an experienced, unbiased lawyer is critical if you want to ensure that your rights are adequately safeguarded. Legal and tax matters are always handled by local notary offices close to your property. Or if you live overseas you can seek advice through your local Spanish Embassy.


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