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Selling Property in Spain: A Complete Guide to Costs, Taxes, and Documentation

Are you planning to sell your property in Spain, especially in sought-after areas like Costa del Sol? Knowing the key selling costs, tax implications, and required documentation can help you navigate the process smoothly. In this guide, we cover all the essentials, from legal fees to capital gains tax exemptions, ensuring you’re well-informed before making your next move.

Selling Costs in Spain

When selling your property in Spain, it's important to understand the various costs involved:

  • Agency Commission: This is usually a percentage of the sales price and agreed upon with your real estate agent.

  • Lawyers' Fees: Expect to pay 1% of the sales price plus 21% VAT for legal representation during the sale.

  • Plusvalía Tax:

    • What is Plusvalía? This is a local municipal tax based on the increased value of the land over time, not the property itself. It’s calculated using the "valor catastral" from the I.B.I. receipt and varies depending on how long you've owned the property and local tax authority tariffs.

Taxes and Obligations for Non-Residents

If you are a non-resident selling property in Spain, there are specific tax obligations you must be aware of:

  • Obligatory Retention for Non-Residents: The buyer must withhold 3% of the sale price and pay it to the Spanish tax authorities to cover any outstanding tax liabilities. If all taxes are up-to-date and the sale is without profit, your lawyer can request a refund of this amount.

  • Capital Gains Tax:

    • Who Pays? The seller is responsible for capital gains tax if the sale generates profits.

    • Tax Rate: Non-residents are subject to a tax rate ranging from 19% to 24%, depending on the type of income and the country of residence. This includes income obtained in Spain from economic activities, ownership of a second residence, and rental income from real estate. For taxpayers residing in another member state of the European Economic Area (EEA) or the European Union (EU), the applicable tax rate is 19%. For taxpayers who are not residents in the EU or EEA, the tax rate is 24%. When selling a property in Spain, the buyer is required to withhold 3% of the purchase price and remit it to the Spanish Tax Agency as a payment on account of any capital gains tax that may be due by the non-resident seller.

    • Deductions: You can deduct expenses related to purchasing and selling, such as agent fees, lawyer fees, and taxes.

Capital Gains Tax Exemptions

Certain sellers are exempt from capital gains tax:

  • Sellers Aged 65+: If you are 65 or older, a fiscal resident of Spain, and have lived in the property as your main home for more than 3 years, you are exempt from capital gains tax.

  • Sellers Under 65: If you reinvest the profit from your sale into a new primary residence within 2 years, and meet the residency requirements, you may also qualify for an exemption.

Additional Selling Costs

Mortgage Cancellation Fees: If there is an outstanding mortgage, you’ll need to pay between 0.5% – 1% of the remaining balance to cancel it.

Required Documentation for Listing Your Property

To list your property for sale in Spain, you'll need the following documents:

  • Paid I.B.I. (Council Tax) receipt

  • Paid Rubbish Collection (Basura) receipt

  • Copy of N.I.E. number and passport

  • Nota Simple (property ownership report)

  • Community fees receipts (if applicable)

  • Energy Certificate: It is mandatory to provide an energy certificate when selling. We can refer you to our partner architects, with costs starting at €1/m² + VAT (minimum €100 + VAT). The certificate is valid for 10 years.

Free Property Valuation – No Obligation

We offer a free, non-binding property valuation to help you understand the potential value of your property in Costa del Sol. Contact us today to get started and take the first step toward a successful sale.

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