Selling a property is Spain involves a number of obligations and costs that are accounted to the seller.
The general rule of selling a property in Spain is that the purchaser can buy the property free of liens and obstacles. The property needs to be up to date with all the payments and taxes.
The Agency Commission
The agency commission in Spain is paid by the seller. The amount of commission the agencies on Ibiza charge is 5% of the selling price. The amount of commission paid to the agency can be deducted from the capital gains tax.
Capital Gains Tax
This is the amount of tax thats needs to be paid if the property increased in value from when the owner has bought it in the past to the price he or she will sell it for today.
There are some exceptions for not having to pay these taxes. These exceptions are: The sellers of the property are older than 65 years of age and have lived in the property for a minimum of 3 years. If this case does not apply to you, the following costs are will occur.
The property has increased up to 6.000€ in value, 19% capital gains tax needs to be paid.
The property has increased between 6.000€ and 50.000€ in value, 21% capital gains tax needs to be paid.
The property has increased by more than 50.000€ in value, 23% capital gains tax needs to be paid.
All official invoices relating to the purchase of the property, such as refurbishing, notary expenses, lawyer expenses and estate agency fees can be deducted from the capital gains tax.
Income Tax Provision for non-residents- Retencion
If the seller is not a resident in Spain, he or she has to pay 3% income tax. If the seller believes and can prove that his or her tax liability is less than 3%, he can claim a refund.
(Solicitud CCE) All property owners who want to sell or rent their property, need an energy certificate. These certificated must be issued by a qualified certifier. This is either and architect, surveyor or technical house engineer. The costs of this certificate vary on the size of the property and can be between 100€ and 500€. This invoice as well can be deducted from the capital gains tax.
The plusvalia is the tax over the increase of the value of the ground of the property. This is paid to the local town hall. The amount of the plusvalia is calculated on the basis of: The period of ownership, the location of the property and the cadastral ground value. The plusvalia tax can be requested at the town hall where the property is located.