There are five primary expenses when selling your property.
- Capital gains tax,
- Plusvalía tax
- Energy efficiency certificate
- Electrical bulletin
- Lawyers/agent fees
Capital gains tax is:
@ 19% (for both residents & non residents) you will pay capital gains tax on your net profits from the sale. The net profit is obtained by calculating the difference between the purchase price and the sale price. Bear in mind that you could be exempt from paying CGT if you have lived in Spain for three years and you reinvest the money from your property sale into another main home. If you think you might be eligible for exemption, speak to a lawyer, as this can make a big difference on the fees you pay
You may be able to claim various costs against your Capital Gains Tax including:
- Lawyers or Solicitors fees
- Notary fees
- Estate agent fees
- Structural building work
- Home improvements, IE, kitchen, bathrooms, building work, tiling, swimming pool, etc. ( You must have receipts and copies of all the licenses and invoices. The copies will help you offset the expenses against the capital gains when you decide to sell the property in future, thereby reducing your capital gains tax on the vending of the property)
Tax Provision (Retención) (3% for non-residents only) on the declared sale price.
On the day that you complete on the transaction at the notary there will be a charged of 3% of the total amount which will be deducted from the final money that you will receive. This is a part payment of the main 19%, the rest of the payment will be made at the tax office.
Plus valía Tax
Plusvalia tax is paid to the local town hall where the property is located. The calculation is based on the increase of the value of the land, known as valor catastral, and the number of years you were the owner. The amount will vary from one town hall to another but this usually amounts to just a few hundred Euros.
Certificate of Energy Performance.
This has been compulsory in Spain since 2013, this is something you need to arrange when you put your property on the market. You cannot sell your property without this Certificate. It can cost between €80 to €350 Euros depending on the size of the property. You can ask your property agent to organize this for you.
The property must be handed over with the actual “ boletin” of electrics to prove the installation conforms to actual legislation and can be changed over to new owners. If the installation is older then 20 years a new bulletin will be required.
Solicitors / Lawyers fees
These are cost that are charged by your own solicitor or lawyer.
Bear in mind that you could be exempt from paying Capital gains tax if you have lived in Spain for three years and you reinvest the money from your property sale into another main home. If you think you might be eligible for exemption, speak to your accountant or lawyer, as this can make a big difference on the fees you pay.
Foreign residents who are aged 65 and over
The seller resident must be over 65 years old when the sale is made. If you are selling your primary residence you are not liable to pay capital gains tax. Again you will need to prove that you have lived in Spain for 3 years or more and intend to continue living here. If you intend to go back to your home country you pay 3% tax on the full declared price on completion and then in your next years tax declaration you can claim this money back from the tax office. If you don’t declare your taxes here, but can prove that you earn less than 11,200 euros per year, then you are exempt from paying Capital gains tax.