When you buy or sell property in another country, it’s important to make sure you understand the process before beginning, including any unforeseen fees and charges you may be liable to pay. Selling property in Spain can be complicated, and it’s a little different depending on whether you are a resident or non-resident in Spain. Let’s take a look at all aspects of the cost of selling a house in Spain.
Spanish Property Sales Taxes
There are two main taxes you will have to pay when selling property in Spain: Plusvalia tax and Capital Gains Tax (CGT).
Plusvalia is a municipal tax which you pay to the local council. The amount of tax you pay is based upon the increase in value of the land your property is situated on between the date you bought it and the date you sell. Calculating how much Plusvalia tax might be can be complicated, and the Spanish legal system is due a reform on this tax. It’s best to speak to your lawyer before selling a Spanish property so that you know how much this tax might be.
Capital Gains Tax (CGT) is payable if you make a profit when selling a house in Spain. The current CGT rate is 19%-23% for non-resident sellers, while resident sellers will pay CGT on their annual tax declarations. When you sell, the Spanish Tax Authority will withhold 3% of the total sale price – taken directly from the buyer – which means you will only receive 97% of the total sale price. You will then settle your CGT bill, with the total amount being refunded if none is owed.
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. To find out more about these taxes in a little more detail, read our blog: Selling property in Spain: taxes you must pay after sale.
Property Sales Legal fees in Spain
In many cases, sellers in Spain do not need to pay legal fees as it is usually the buyer who will pay the notary fees for drawing up the deeds and making contracts. However, if you do decide to pay a lawyer to advise you during the sale of a property in Spain, you could be charged around 1% of the total sale price for this service.
Estate Agent Fees Spain
Agency fees can certainly add up in Spain; most estate agents will charge a 3-6% commission on the sale of a property. It’s worth shopping around to find estate agents with lower fees because that 3% variation can make a big difference if you have a high-value property.
Other fees associated with the cost of selling property in Spain
There are a couple of extra fees to consider before you put your Spanish property on the market.
Since 2013 all property sellers in Spain must purchase a Certificate of Energy Performance or risk facing a fine. You will need to arrange this before putting your property on the market, and it will cost between €100 and €150.
If you have ever held a mortgage on the property, even if it is paid off, you may also be liable for mortgage cancellation costs in order to lift the mortgage charge from the Property Registry. This could amount to hundreds of euros, so it is worth bearing in mind before selling.
While Spanish property taxes and fees can look intimidating at first, they are not that different from those in other countries. It’s important to understand the full cost of selling property in Spain and which fees you might be liable to pay before putting your house on the market, but remember it’s still possible to make a tidy profit from Spanish property even after CGT and other fees have been paid.
You can find out more about selling a house in Spain in our article: Key facts when selling property in Spain.
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