02 – Sale Taxes and Costs for VENDORS

02: What TAXES and associated costs must be paid when SELLING a property in Sotogrande, Spain.  

1. Plusvalía Municipal
2. Capital Gains Tax
3. Estate Agents commission
4. Legal fees
5. Notary Fees

1. Plusvalía Municipal in Spain 

In all cases a municipal tax, ‘Plusvalia Municipal’ (which should not be confused with Capital Gains Tax which the seller is liable for when the property is sold). This ‘Plusvalia’ is paid by the seller, unless otherwise agreed. It is a municipal tax on the increase in value on the land, from the date when it was purchased until it is sold. From January 2013, proof of payment of the Plusvalia must be provided in order to register the new ownership. 

2. Plusvalía –  Spanish Capital Gains Tax

The present level of capital gains tax is set at 21% (unless the vendor is a trading corporate entity or a resident person over the age of 65). In the case of non-residents, the purchaser is obliged by law to retain 3% of the sales price and pay it directly to the tax authority (Tesoro Público) as credit for the pending tax. In the case that the 3% is greater than the actual capital gains tax payable, the vendor can reclaim this amount.

3. Estate Agents commission

Estate agency fees, known as commissions, are paid by the seller, and normally built into the price unless agreed otherwise. Estate agents in Southern Spain will usually charge between 5% and 7% sales commission, plus 21% V.A.T. Noll Sotogrande charges a flat rate of 5%, plus IVA 21%.

4. Legal fees in Spain

Upon selling a lawyer will be communicating with the buyers lawyer providing all the documentation required for due diligence. The lawyer’s fees should be negotiated. 

5. Notary Fees in Spain

Whilst Spanish law states that most of these fees are payable by the Sotogrande vendor it is not uncommon for these costs to be negotiated to be paid by the purchaser. The fees are based on a scale of the value of the sale and the number of pages of the deed (“escritura de compraventa”).

 

Let us help you!

We are always available to discuss specifics and can recommend a number of different reputable professionals who can provide advice in your own language if you prefer. Contact us: info@noll-sotogrande.com

Charles Gubbins.
Email: charles.gubbins@noll-sotogrande.com
Mobile: +34 607 911 661

Stephanie Noll
Email: stephanie@noll-sotogrande.com
Mobile: 34 607 465 383

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