03 – What you will pay when SELLING your home

03: What taxes and costs will I pay when I sell my property in Sotogrande

As the say there is nothing more certain than death and taxes, and here also, once you sell you will be required to pay taxes. These are:

Plusvalía – Municipal Tax

This is a tax charged by the local municipality or town hall: The tax amount is calculated with a formula based on the “valor catastral” – the value of the land (not the building) of the property and the number of years that land has been owned by the vendor. Payment of this tax is the responsibility of the vendor but if it is unpaid then that liability will pass to the new owner

Capital Gains Tax

This is the tax on the profit made upon selling your property. This profit is the difference between the selling price and the purchase price plus all purchase-related expenses and costs on improvements of the property.

Spanish non-residents from outside the EU (European union) are expected to pay a fixed capital gains tax rate of 24 percent. However, if the non-residents are from a European country, Norway or Island, the capital gains tax is reduced to just 19 percent.

Also, if you are a non-resident, a 3% retention will be applied and withheld by the tax authority. The retention will be returned once the authorities are satisfied you have paid any capital gains taxes due as a result of the sale.

Vendors Costs upon selling

Agents Commission

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%.

Notary Fees

Whilst Spanish law states that some of these fees are payable by the vendor it is not uncommon for these costs to be negotiated to be paid completely 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”).

Lawyer fees

Can be up to 1% of the sales price, but much depends on the complexity of the sale. Note however, that by engaging a reputable lawyer, you will be able to mitigate the tax to be paid, by offsetting against some if not all the following:

Original lawyer’s fees (on buying), original notary fees (on buying), original land registry fees (on buying), and taxes paid (on buying). Also, all property-related improvements (not maintenance costs) for example: glass curtains, refitted kitchen, roof retiling, wood flooring, A/C installation, house alarm etc. Additionally, estate agent’s commission (on selling) and your lawyer’s fees (on selling).

 

Let us help you sell your property in Sotogrande!

We are always available to guide you and we can provide advice in your own language if you prefer.

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

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

© Noll Sotogrande Real Estate – Spain

Disclaimer: Please note the material contained in this guide is for informational purposes only. This information is general in nature and has not taken into consideration your specific personal circumstances.