Costs of selling your property in Spain
There are costs incurred when selling a property in Spain. These can be broken down as follows:
These can be discussed when listing a property.
(1% +IVA) Most lawyers charge approximately 1% +IVA of the agreed sales price.
This is a one off tax levied by the local Tax Authorities. This is based on the increase in value of the land on which the property is situated since the property was last sold. The figures are based on the rateable value of the land (Valor Catastral del Suelo) and not on the sales price.
(For Non-residents only.) The purchaser’s Lawyer is obliged to retain 3% of the declared sales price and pay the funds to the Spanish Tax Authorities. This is to guard against any taxes that may be owed in Spain, including Capital Gains Tax. If the seller can prove that all taxes have been paid and there is no Capital Gains then this money can be reclaimed.
Capital Gains Tax
This is based on the net profit of a sale.
Capital Gains Tax for residents and Non EU residents is taxed at a flat rate of 21%.
A resident of Spain is exempt from paying Capital Gains Tax if:
The property is your main residence (owned for 3years or more) and
The full sales price is re-invested in another property as your main residence within 2 years and
The new residence remains your main residence for the next 3 years. Residents over the age of 65 and who have owned the property for 3 or more years (as their main residence) are also exempt from Capital Gains Tax.