Expenses and taxes when selling a property in Spain
When selling a property in Spain, the expenses and taxes paid by the vendor, are as the following:
- The real estate fee is paid by the seller. This is a commission rate based on a percentage of the final selling price. In Marbella and through the Costa del Sol the average is 5%. However it may vary depending on the property or the agent.
- The Notary fees should be paid by the seller, unless agreed otherwise with the buyer, except for the first copy of the title deed (escritura de compra venta) which is paid by the buyer. The Notary fees will be charged according to an official scale, and depend on the number of pages and complexity of the title deed.
The transfer taxes differ if you are resident or non resident. However, the Plusvalia is the same in both cases. The Plusvalia is a municipal tax that is based on the increase of the land’s value since you bought the property. This tax is calculated by the Town Hall. Your legal representative can give you an estimation on the amount.
- Non resident: If you are a non resident citizen in Spain you are subject to a 3% retention on the selling price for any possible capital gains. This amount is retained from the selling price by the buyer, or his lawyer, as the buyer is officially responsible for this. The capital gain tax since January 2013 is 21%. This profit is the difference between the selling price and the buying price plus all expenses related with the purchase, and any possible improvements on the property. If the increase on capital gain is lower than the 3% retention you can claim the difference through your lawyer. If the profit is higher, the seller will have to pay the difference to the Tax Office (Hacienda).
- Resident: If you are a resident in Spain you are not subject to any retention on the selling price. However, you have to include the capital gain profit into your next year income tax return for residents (IRPF).
There are other taxes like the IBI (real estate tax to be paid annually) and garbage collection (basura) that you should revise have been paid up to the completion date of the property transfer by the vendor. The same with any other possible expenses like, community fees, electricity, water, etc. The seller has to provide evidences that all these taxes and expenses have been paid.
The details provided herein are only by way of an informative guide, they do not substitute legal advice. The content is subject to updates, may have errors or omissions.