There are basically five expenses when selling your property.
- Capital gains tax,
- Plusvalía tax
- Energy efficiency certificate.
- Electrical bulletin
- Lawyers/agent fees
CAPITAL GAINS TAX @ 19%: of your net profit. (for non residents)
The net profit is basically obtained by calculating the difference between the purchase price (or inheritance) and the sale price.
You may be able to claim various costs against your Capital Gains Tax:
- Lawyers fees or Solicitors fees
- Notary fees
- Estate agent fees
- Building work
Home improvements, IE, kitchen, bathrooms, building work, tiling, swimming pool, etc. ( You must have receipts that are made out to the owner of the property)
Income Tax Provision (Retención) (3% non-residents only)
On the day that you complete on the sale there will be a charged of 3% tax retention on the full amount of the declared sale price in the event the seller is a Non Resident in Spain.
The plusvalía tax is based on the increase in the value of your land only, from the date you bought it to the date you sell it and it is calculated by your local Town Hall, the factors determining its amount will vary from one Town Hall to another but this usually amounts to just a few hundred Euros.
Certificate of Energy Performance.
This has been compulsory in Spain since 2013, this is something you need to arrange when you put your property on the market. You cannot sell your property without this Certificate. It can cost between 80 and 350 Euros depending on the size of the property. You can ask your property agent to organize this for you.
The property must be handed over with the actual “ boletin” of electrics to prove the installation conforms to actual legislation and can be changed over to new owners. If the installation is older then 20 years a new boletin will be required.
These are cost that are charged by your own solicitor or lawyer.
Foreign residents who are aged 65 and over:
If you have lived in the property as your main home for three years or more, and you are over 65 years of age when you sell it, then you are exempt from capital gains tax. If you intend to go back to your home country you pay 3% tax on the full declared price on completion and then in your next years tax declaration you can claim this money back from the tax office.