Selling in Spain: Prepare for Additional Costs

Selling your property in Spain is an exciting process, but it is important to be aware of the additional costs that may affect your profit on the sale. Here is an overview of some of the most common costs you can expect when selling your property in Spain.

Profit tax in Spain

Like most countries, Spain has a capital gains tax that is applied to various assets, including real estate. For residents of Spain, the tax rates vary depending on the profit achieved. Currently, the profits tax starts at 19% for the first €6,000 in profits, rises to 21% for profits between €6,000 and €50,000, and reaches 23% for profits above €50,000. Non-residents of Spain can expect to pay 19% tax if they are resident in an EU country, while those resident outside the EU can expect a tax rate of 24%.

To calculate capital gains tax, various costs are deducted from the final sale price, including the purchase price (including all relevant fees), legal fees and other costs incurred during the sale process. The final amount owed for capital gains tax depends on the net profit after deducting these costs.

The Plusvalia tax in Spain

Another cost that may arise when selling your home in Spain is the plusvalia tax. This is a local tax paid to your local council and is calculated based on the increase in land value where your property is located. The Plusvalia tax depends on how long you have owned the property and can vary between different municipalities. It is important to note that the capital gains tax is only based on the land value, not on the property on the land.

Who pays the Plusvalia tax?

By law, it is the seller who is responsible for paying the plusvalia tax in Spain. But it is also possible for both buyers and sellers to negotiate this.

When do you pay the Plusvalia tax?

The Plusvalia tax must be paid to the Town Hall within thirty days of the date of sale or within six months of the date of death in the case of inheritance.

Being aware of these additional costs when selling your property in Spain can help you plan and prepare for a smooth selling process. By having a clear understanding of the various taxes and fees, you can avoid unpleasant surprises and ensure that you receive a fair return on your investment.

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