If handled by a professional agent and an experienced lawyer, selling a property in Spain can be plain sailing. All costs, fees, taxes and legal obligations will not only be spelt out, they will be handled for you. That said it’s still important to be informed and aware of exactly how much you will need to pay and to whom.
Reputable property experts Siesta Homes works with legal expert Diana Zuurling, who is conversant in all aspects of Spanish property law and keeps up to date with all changes regarding tax, fees and such like. Here is a summary of the current costs involved in selling a property in Spain.
3% retention - non-residentcapital gains tax
If you have non-resident status when you sell a property in Spain, 3% of the sale price will be retained by the Spanish tax authority as surety against your potential Capital Gains Tax liability. The Capital Gains Tax will then be calculated against the value at the time of purchase and again at the time of the sale.
If Capital Gains Tax is due, you will be liable for 21% of the net profit (the increase in value from the purchase to sale). The 3% retention will form part of the payment on account. On the other hand, if your property hasn’t increased in value between the time of purchase and sale, no Capital Gains Tax will be liable and you can request the return of the 3% retention payment. Your lawyer will provide the appropriate Capital Gains Tax form and complete it for you. However, you should be aware that as a non-resident, you will be liable for 5-years of non-resident taxes, if you have not always paid them.
Similar to Capital Gains Tax, this is a municipal tax based on the value of the land, calculated on the value of your property at the time of purchase and sale.
As with all professional services you will need to factor in legal costs.
Real estate agent commission
Agents charge on a commission basis to cover the cost of marketing your property and getting it seen by a wide audience actively seeking to purchase real estate. The fees also include additional assistance with administration, research, advice and access to an invaluable bank of local knowledge.
If you have a mortgage on your property, you must also expect to be charged to cancel the mortgage, notary and registry fees.
Should you require any further information about the process or cost of selling Spanish property visit Diana Zuurling’s website at www.zuurling.com. If you need assistance with selling a property, contact the sales team at Siesta Homes for a no-obligation chat.