Did you say you’re thinking of selling your property in Spain, but have heard there are many costs involved? I myself have heard my fair share of Chinese whispers over the years, of different versions of selling expenses. The true costs became distorted over time, and exaggerated.
When it comes time to sell your property, 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 (Profit) 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 any unpaid utility bills.
Plusvalia. This is a fee payable to the local Town Hall on every property sale, 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 saying that if there is no increase in land value, then no Plusvalia 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 fee, then I’m sure they will. It is NOT paid by the purchaser.
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, find someone that brings value to you. Don’t be afraid to ask about their recent property sales in your area. Better than that, get them to show you! The buyers do NOT pay the agents commission.
It’s not a pain to sell in Spain, just stay clear of the rumours you hear!
Selling your home? Enjoy the journey!