Costs for selling a property in Spain
- Agency commission
- Capital gains tax
(variable 19%,21%,23% for 2020)
- Income Tax Provision (Retención
(3% non-residents only)
- Energy certificate
(between 100-500 euros)
When you sell a property through an estate agent you will have to pay a commission fee. Estate agents usually charge around 5% commission in Spain. The seller can deduct the Agency commission fee from his capitals gains tax.
As a seller, you might want to ask the services the agency provides. Good estate agents should also have the legal know-how to make option contracts, apply for NIE numbers, and after-sales services like changing the utility bills and community charges to the new owner for example.
Sellers can advertise their property through several estate agents. Nevertheless, some estate agents will want to offer the seller to sell it exclusively through them by agreeing to take a smaller commission fee.
Did you know that it takes an average of more than 8 months to sell a property in Spain?
Sellers need to take that into account when advertising their property exclusively through an estate agent.
Capital gains tax
19% for the first 6.000 euros
21% from 6.000 and 50.000 euros
23% from 50.000 onwards
As an example if the seller bought a house in 2003 for 200.000 euros and in 2018 he sells it for 350.000 euros, he will have to pay capital gains over 150.000 euros in this way:
(350.000 – 200.000 = 150.000). 19% for the first 6.000 (6.000 x 0.19) + (50.000 x 0.21) + (94.000 x 0.23)= 1.140 + 10.500 + 21.620= 33.260 euros.
There are exceptions when the seller does not have to pay capital gains tax and that is when the sellers of the property are older than 65 and have lived there officially for at least the last 3 years.
All official invoices relating to the purchase of the property, such as refurbishing, notary expenses, lawyer expenses, and estate agency fees can be deducted from the capital gains tax.
Income Tax Provision for non-residents – Retención
If the seller is not a Spanish resident he has to pay a 3% income tax provision or retención in Spanish which goes directly to the tax office to cover any taxes resulting from the sale. However, the seller can claim for a refund if he believes that his tax liability is less than 3%.
From June 1, 2013, by Spanish law all property owners who want to sell or rent out their property need an energy certificate. These certificates must be issued by a qualified certifier, such as architects, surveyors or technical house engineers. The costs for such a certificate may vary on the size of the property and can be between 100 and 500 euros. The invoice for this certificate can also be deducted from the capital gains tax.
The plusvalía is a tax over the increase of the value of the ground the property is on. This is paid to the local town hall. The plusvalía is calculated on the basis of 3 factors: The period of ownership, the location of the property and the cadastral ground value.
The plusvalía tax can easily be requested at the town hall where the property is located.
By law, the plusvalía tax should be paid by the seller and it can be a substantial sum of money. Nevertheless, the plusvalía can be paid by the buyer if he has agreed to it.