- Selling a property in Spain is a relatively simple process, but if you have a minimum care you could have headaches. As for the purchase of a property, we recommend that vendors hire the services of a professional lawyer to help them and advise them in the process. Vendors must be aware of several facts before entering the process.
- The value of your property.
- The tax payable for the profits or losses generated.
- If the property belongs to a company and generates VAT.
- The Seller’s Tax Liability
- Capital Gains Tax
- The seller will be responsible for the payment of his Capital Gains Tax. This is the tax based on the increase in value of the property from the original purchase date to the date that it was sold on.
- As from 1st January 2012 the Capital Gains Tax has increased from 19% to 21%.
Any conveyance costs involved in the buying and selling of the property can be deducted as long as these costs are accompanied by official receipts. Therefore, all purchase taxes, notary fees, legal fees etc can be deducted from the calculations
- To use an approximate example,
- Original purchase price: 100.000€
Taxes & fees incurred: 10.000€
Selling price: 160.000€
160.000 – (100.000 + 10.000) = 50.000€
50.000€ x 21% = 10.500€ Capital Gains Tax due.
- Residents are exempt from Capital gains tax if they are,
- 65 or over and have lived in the property for 3 years or more
- If the property is a main residence and the net sale proceeds are reinvested in the purchase of another new home within two years
Plus Valia Tax
Plus Valia Tax
The seller by law must pay the tax, although this can be negotiated sometimes to be paid by the buyer.
The tax on the increase in value of land of urban nature (IIVTNU), better known as “municipal Capital gains“ Plus Valia, is a direct tax, instant accrual, municipal and voluntary establishment by the municipalities, which corresponds entirely its management. The local authorities shall determine the amount and be calculated in accordance with the appraisable value of the property and the number of years it has been owned by the seller
Declared Sale Price
In Spain, each Autonomica community establishes a tax value of the property. Spanish tax authorities intend to avoid tax evasion, and oversee real estate transactions.
If they consider that the stated selling price is too low, they can impose penalties on the seller.
Citizens can consult the tax value. We recommend and do not participate in values contrary to the norm and we advise our clients not to be involved in this activity
Selling a Property in Spain Our Team
Our team has experience in real estate transactions and updated knowledge of current laws and tax liability. If you are considering listing your property with TableTwet estates and want to consult with our agents, it will be a pleasure to assist you and to help you sell your property satisfactorily. Just contact us, and a manager will call you.