Do you know what you must pay when you sell your home in Spain?
You’ve decided that you’re ready to list your property on the market for sale. Yaaaay! But do you know how much your selling costs are? Boooooo!
Don’t worry, because they can be less than you think! Yaaaay!
I’ve heard this week, some of you have been quoted high taxes and general selling expenses, which were completely untrue. I’ve heard of Chinese whispers, but I think sometimes, figures can become over-exaggerated when spoken about.
I’m going to talk loud, and drown out those Chinese whispers once and for all!
Here’s a SHORT list of selling expenses:
If you are a non-resident of Spain (i.e. do not complete a Spanish tax return as a resident) then you are obligated to leave with the Spanish Inland Revenue, 3% of the sale price, on the day of completion. This is held on account, to cover any Capital Gains that may be due. If no tax is due, then the Inland Revenue will refund this 3% to you at a later date. If some tax is due, then they will refund a portion, and if you must pay tax, then you should not expect a refund. On experience, refunds have been made from anywhere between 3 months after a sale has completed, to 18 months and in some unfortunate cases, it has taken a little longer. It is not held on account to pay for any unpaid utility bills.
Plus Valia. This is a tax payable to the local Town Hall, of which is an increase in the land value, from the time when you originally purchased your property, to the time when you sell. This is a bit of a delicate subject right now, as a new law has just been passed stating that if there is no increase in value, then no Plus Valia tax is payable. Please bear this in mind, as I’m sure you’ll agree with me when I say, if they can find a way of keeping the values up, in order to keep charging this tax, then I’m sure they will.
Real Estate Agents commission. In general they can range between 3% to 10%, and even more in some cases. When choosing a professional to help sell your property, then find someone that brings value to you. Meaning, they know what they’re doing!
When selling your home, it is customary that the buyer pays the Notary Fees, as you would have paid this when you originally bought the home, however if you are selling to Spanish citizens, they usually like to go halves with the seller, making this a 50/50 between both parties.
It’s not a pain to sell in Spain, just keep clear, of the rumours you hear!