When wanting to sell your property in Spain it can often come as a shock the fees that are included. We always aim to ensure that our clients are fully aware of the costs involved and we help them to prepare for these.
In our guide below we hope to offer further information on just what is included as a cost to sell your property in Spain. These are standard fees that everyone must pay and are most usually deducted from the price of selling the property.
Of course it is possible to avoid agency commissions if you sell your house through private channels but this in itself can present costly issues. An agency will have preferred lawyers, gestors, contacts at the notary and many other key lines of communication that you may not otherwise be able to reach.
An estate agent fee will be 5% generally. This can vary from one agent to another and should not be the deciding factor in selecting an agent. Consider the services and selling record of the agent first and foremost. If your property is sold at a higher price, with great advice and in a much shorter time period, then a higher percentage may not be so costly.
Use an agents legal know-how to be a step ahead at every moment in the selling process. A great agent will ensure you are informed and well placed in the whole transaction.
Capital Gains Tax
In 2018 the capital gains tax is set to:
- 19% for the first 6.000 €
- 21% from 6.000 € to 50.000 €
- 23% from 50.000 € onwards
There are specific exceptions to this where the seller may not have to pay capital gains tax but these are rare. An example of one of these situations could be if the sellers are over the age of 65 and have officially lived in the property for over 3 years.
All other expenses must be documented and then can be deducted to reduce the cost of this fee.
Income Tax Provision For Non-Resident – Retencion
If you are selling your property and are not a resident in Spain then there is a ‘retencion’ or income tax provision that must be retained. This amount is set at 3% at the time of writing. The fee goes directly to the Spanish tax office and will cover any resulting tax costs of the property purchase.
If the liability is less than the stated 3% the seller can apply for a refund or rebate on this money. It is a very good idea to use Spanish law representation in this scenario to ensure you can claim if the occasion should present itself.
It is law and has been law since 2013 that property owners must have an energy certificate if they wish to either sell or rent their property. These certificates must be issued by a licensed supplier. Examples of these certificate suppliers include architects, surveyor, and other registered engineers.
The costs of obtaining a certificate can fluctuate but you should be looking to pay no more than 500 € for this document. This amount should be deducted from your capital gains tax before final payment of the latter.
Plusvalia is a tax that is charged on the increase in value of the property or said more correctly the ground that the property is on. This is a tax that is paid to a local town hall and not directly to the Spanish tax office as the capital gains tax is. To calculate the Plusvalia 3 main factors must be taken into consideration:
- Time period of ownership
- Location of the property
- Cadastral ground value.
This tax is something that can be easily requested from the town hall where the property is located. Due to the costs that can be accrued through Plusvalia this is another area where having local representation can prove imperative. Plusvalia can be a substantial payment that must be made when selling a property.
We hope the information presented above will help sellers to have a better idea of the costs involved in selling your house. It is nothing to worry about as most of these can be deducted from the final fee but it is something that all sellers must be aware of.
** PLEASE BE AWARE. This information is correct to our knowledge at the time of writing. We are not legal representatives and as such we recommend you seek qualified legal advice on all of the above. This is intended as an advisory guide.