Selling a house in Spain? These are the costs and taxes

Selling your Spanish property? Consider these costs and taxes!

Are you planning to sell your property in Spain? Then it is important to be well prepared. At UNIQ Estates we are ready to guide you through the sales process, but we also think it is important that you know what is involved financially.

First of all, it is crucial to determine whether you are a resident in Spain or not, because this has direct consequences for the tax you have to pay. In addition, regional differences also play a role - whether your property is in Alicante, Murcia, Almería or Málaga, local rules and rates can differ.

In this article we list the most important costs and taxes for you.

1. Plusvalía Municipal (local capital gains tax)

This municipal tax is levied on the increase in the value of the land since you bought it. The amount depends on:

- the location of the property,

- the length of time you have owned it,

and the cadastral value of the land.

The Plusvalía is a local tax, so the rates can vary considerably from one municipality to another.

2. Capital Gains Tax (IRNR)

If you make a profit on the sale of your property, you will pay tax on it:

Non-residents (EU): 19% of the profit made.

Residents: 19% to 23%, depending on the amount of the profit.

Added value = sales price – (purchase price + demonstrable costs).

Please note: certain costs may be deducted from the profit, such as purchase costs, estate agent fees and improvements to the property.

Exemptions for residents:

• Sale of main residence (vivienda habitual):

• 100% exemption from capital gains tax if you: reinvest the money in a new main residence (within 2 years before or after sale), or are over 65 and it is your main residence (and you have lived there for at least 3 years).

• No 3% retention applies (this only applies to non-residents).

3. 3% retention for non-residents (Retención)

Are you a non-resident in Spain? Then the buyer is obliged to retain 3% of the sales price and transfer it directly to the Spanish tax authorities (Hacienda). This serves as an advance on the capital gains tax.

Did you make little or no profit? Then you can reclaim this amount later via a tax return.

4. Estate agent fees

If you decide to hire an estate agent to sell your home in Spain, it is also important to take into account the estate agent's fee. As the seller, you are usually responsible for the estate agent's fees. The exact fee is always clearly agreed in advance, so that you are not faced with unexpected costs.

5. Legal and notary fees

Although the buyer usually bears the notary and registration costs, as the seller you also have some expenses:

A lawyer or gestor will help you with the handling of legal and tax matters (costs: €1,000–€2,000).

Possibly a power of attorney if you are not present at the sale.

6. Mortgage and cancellation costs (if applicable)

Do you still have a mortgage on your property? This must be fully repaid before or during the sale.

Additional notary fees are payable for officially removing the mortgage from the register (often between €600 and €1,000).

Also check with your bank whether an early redemption fee applies.

Selling well prepared

Selling a property in Spain is very feasible, especially if you know what to look out for. By taking the costs and taxes mentioned into account, you can approach the sales process with confidence and avoid any surprises. Furthermore, buying a property in Spain can be an excellent investment, given the attractive property market and the growing demand for properties in popular regions.