If you have already read our article, BUYING PROPERTY IN SPAIN and you have successfully purchased a property this is to give you an idea as to the taxes that you may incur in as non resident when selling the same property which should be taken into account when establishing the sale’s price.
The tax has to be paid to the Local Council of the municipality where your property is located.
The amount of which will depend on 3 items.
– The rateable value of the land on which your property has been built.
– The term that has elapsed since the purchase.
– The rate of tax to be applied by the local Council.
In general terms more tax has to be paid if the property is worth more and a long time has elapsed since the purchase .
Read more on Plusvalía Tax
Capital gains tax
The capital gains tax will be the difference between the purchase price of your property plus expenses paid and the net sale price, i.e sale’s consideration less expenses paid in the sale (plusvalia tax, Real Estate Agent fees if applicable, legal fees etc).
With the difference between the two a tax of 19 % has to be paid. If the vendor is a non resident the purchaser has to retain 3 % of the purchase price to be paid directly to the tax office on account of the capital gains tax.
In Spain the purchaser is responsible for the 3% and it is lodged against the property, if it is not paid the property has the debt.
After the sale a capital gains tax assessment has to be presented and the balance of the tax to be paid or if the tax is less than 3 % a refund of the surplus paid can be applied for.
Selling your property in Spain other expenses
With regards to other expenses normally in a sales transaction you may decide to use the services of a Real Estate Agent and a solicitor.
The Real Estate Agent is the person you should choose to market the property. They will be in charge of advertising the property and showing it to potential purchasers. The fees normally will be in the region of 4 to 7 % of the purchase price plus 21% VAT.
The lawyer in turn will assist you professionally through the process and will give you the necessary advise and prepare all the documentation required to make a smooth process up to the sale of the property and receipt of sale’s proceed and make sure that you comply with all legal requirements.
You should allow costs for legal fees of 1% of sales price plus 21% VAT.
Lawyer within the firm
Rafael Berdaguer Abogados based in Marbella, Spain.
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