Selling costs for Spanish Residents

When selling properties, the following costs need to be borne in mind:

Agents fees plus IVA (VAT).

Fees vary depending on which basis the seller wishes to sell the property (Exclusive listing / Multi Listing / Consortium Listing).

Plus Valia Tax

This is a tax payable on the increased rateable value of the land from when purchased to when sold. This cost will be established by the Town Hall.

All utility bills IBI (yearly rates) and community fees, where applicable, will need to be paid up to date.

NOTE : Although sellers may have Spanish residency they have to prove that they have been paying taxes in Spain for the past three years by providing a tax certificate. If they are unable to provide this then the 3% retention tax will apply. Sellers with Spanish residency who are over 65 years of age and have owned their property for over three years are exempt from paying capital gains tax. This applies to their main residence only.

Selling costs for Non-Spanish Residents

3% Retention tax is deducted from the purchase price at the point of sale.

This retention tax forms part of the capital gains tax. All other costs detailed above, will apply.

Capital Gains:

• Non-Residents – The general flat tax rate for non residents is 24% or 19% if you are a citizen of an EU/EEA state.
• Spanish Residents – 19% on the first 6,000€ gain, thereafter 21% on profit between 6,001 and 24,000€ and 23% above.

NB Sellers may be entitled to certain allowances depending on how long the property has been owned and whether or not they fulfil the criteria laid down by the tax authorities.

For more in depth information, sellers should consult their Fiscal Representative.

The information shown above is provided as a guide to assist & help both sellers and purchasers.

This information is subject to change if there is any change in legislation. Please do not hesitate to contact us for further information.