What are the taxes and expenses of a seller when selling a property in Spain?
What taxes and expenses are paid when a property is sold?
Do you want to sell a property in Marbella and are not sure what your expenses will be? It is highly recommended to research this beforehand. Before you put your property up for sale, sometimes even before you buy a property, especially if it's an investment, so you have all the cards up front!
Here is the complete list of taxes and expenses you must pay when selling a property in Marbella:
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PLUSVALIA |
| Every seller must pay it (unless there is a loss on the sale, then you can try to avoid it). It is calculated based on the years or months that you have owned the home based on the cadastral value of the land. (Even if you own an apartment, it will be calculated on the proportion of the land on which the development sits). It's usually not a huge expense, but it's something to keep in mind. |
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INCOME TAX |
| It is only payable if you have received income from the sale of your property, and a different tax applies if you are non-resident (24%), resident (19%) if you are an EU/EEA citizen, or if you are selling a company ( 25%). All expenses incurred are taken into account, both in the purchase and in the sale (notaries, registration, lawyers, purchase taxes, agent commissions, etc.). Only the remaining difference is considered income. In addition, reforms, depending on what they are, can also be considered. Of course, you must have all the official invoices for each item on hand. |
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REAL ESTATE FEES |
| If you decide to use a professional real estate agent to sell your property in Marbella, you can always contact us. It is not necessary to use an agent, but using the right ones can increase the chances and speed of the sale. In Marbella, the agent's fees in a sales process are always paid by the seller, never by the buyer and are normally established in advance when listing the property. It is important to remember that the agent, like a lawyer or any other professional, must apply 21% VAT to the amount when issuing his invoice. The cost of the fees is 5% + VAT. |
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LAWYERS' FEES |
| Again, it is not mandatory to use an attorney in the sales process, but it is highly recommended. Even if the buyer uses a lawyer to avoid possible "headaches" after the sale. Normally this expense is around 1%. |
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MORTGAGE CANCELLATION EXPENSES |
| If you have a mortgage on the property, all costs and fees to pay off the mortgage are paid by the seller. This may be the bank's commission for early cancellation of the loan, notary and registration fees for cancellation. |
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WITHHOLDING OF 3% OF THE SALES PRICE |
| It is not a tax, nor a cost, but it is something that we think is important to explain to have a clearer vision. It should only be applied when the seller is a non-resident in Spain. The buyer, by law, must deduct 3% of the purchase price at the notary office. Deposit this amount at the tax office, after signing the deed, in the name of the seller. After the sale, the seller can contact the Tax Agency to request the return of this amount to the seller's bank account. The return process may take approximately 6 months, and finally, the money will be deposited into the seller's account, minus unpaid taxes if any. Generally, if you had income on the sale, the income tax will be deducted directly from the withholding. Typically, lawyers handle this. To request a refund, you must wait a minimum of one month from signing the deed. Once the month has passed, the seller will have three months to submit the form to the Tax Agency to claim the money back. |
