The procedure for selling a home is in a sense similar to buying one. In consultation with a good and reliable real estate agent, a correct and realistic sales price should initially be determined. The sales price always includes the broker’s commission. Then, in case of sale, the following costs and taxes are deducted (from the net amount received by the seller):
Tax Withholding (Retention).
If the seller is a non-resident of Spain, 3% of the declared sale price must be paid to the tax authorities, on account of all taxes due. This retention is offset against the total capital gains tax payable. Should the latter amount to less than the retention, you can use a special tax form to reclaim the difference. Your attorney or tax advisor will assist you with this.
Capital gains tax
(Impuesto sobre las ganancias de capital)
For European non-residents this tax is 19%. Before the tax assessment takes place, several things can be deducted, such as IVA (VAT) and ITP (registration fees), notary fees, any renovation or improvement works on the property, extension costs and selling costs. Under certain conditions this tax is not due (reinvest total profits in Spain within 2 years)
Your attorney or tax advisor will assist you with this.
Capital gains tax (Plusvalia tax)
Tax on the increase in value of the land on which the property is located in Spain. The municipality charges this Plusvalia to the owner (seller), and this can vary by municipality and location. The market price or sale price of the property does not affect the plusvalia tax.
Lawyer fees
Lawyer fees and costs of your counsel averages 1.21% of the sales price.
Disclaimer: These are indicative amounts (2023) and can of course always change as a result of new legislation and (local) adjustments. For the exact amounts you should always consult your lawyer.
