At Costaluz Lawyers, we offer comprehensive conveyancing services. They include assisting you when you sell your property in Spain. As well as ensuring that your interests as the seller are fully protected during the sale, our expert team also handles the taxes and advises on the expenses involved in the transaction.
Got a buyer interested in buying your property? Contact our legal team before you sign any documentation or contracts.
The following is a useful guide to how much you can expect to pay in taxes when you sell your Spanish property.
Taxes when selling a property in Spain if you’re non-resident
- Plusvalía – this is a local tax applied by the council on the increase in the value of land during your period of ownership. Make sure you don’t pay excess on this tax, particularly if you’re selling at a loss, i.e. a lower price than when you bought the property.
Read the 2022 rules for plusvalia tax in Spain.
- Capital Gains Tax (CGT) – the amount due is a percentage of your profit and calculated using a number of factors including the difference between the buying and selling price, the costs you incurred during ownership and an inflation coefficient.
Even if you have zero profit, because you’re non-resident in Spain, the buyer must retain 3% of the price and pay it to the tax authorities on account of your possible tax liability. You then receive a total or partial tax rebate depending on the factors mentioned above.
Note that CGT is a highly complex tax and requires expert assistance to ensure you pay only what you are due. Get in touch for a no-obligation chat or fill in the form below to find out how we can help you.
Costs involved in selling property in Spain
As the seller, you will have the following costs:
- Estate agency fee – between 2 and 6% of the purchase price plus IVA (VAT at 21%). Note that estate agency fees are usually included in the price and therefore paid in practice by the buyer.
- Legal fees – the standard fee is 1% of the price plus IVA. Contract a lawyer before you sign any documentation with the buyer.
- Certificate of energy efficiency – compulsory for all property sales (and long-term rentals) and you can be fined for putting your property on the market without it. Expect to pay €80 to €200.
- Mortgage cancellation costs – if you have a mortgage on your property, you will need to cancel it when you sell. This involved Notary and Land Registry fees – budget for €750-800.
Note that all the above costs are deductible expenses for CGT purposes as long as you have official invoices that include IVA.
If you’re selling your property in Spain and would like to ensure your interests are protected from the day you put it on the market to completion, get in touch with our expert team or fill in the form below.