Expenses for the sale of real estate
Real estate agency commission
The commission to the real estate agency is usually paid by the seller. The commission is a percentage of the value of the sale of the property.
Taxes payable after the sale of real estate in Spain
After the sale of real estate in Spain, each owner is required to pay the following taxes:
Land value tax (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU) or "Plusvalía municipal")
This tax is paid to the local municipality and is calculated based on the change in the cadastral value of the land between the time of its purchase and sale.
Capital gains tax (Impuesto sobre Ganancias Patrimoniales, “Plusvalía estatal” or “Plusvalía")
This tax is paid to the state and is calculated based on the difference between the cost of buying and selling real estate. It is taken into account annually when the seller submits an individual income tax return (IRPF) for tax residents of Spain.
For non-residents, this tax is paid in the form of Non-Resident Income Tax (IRNR). If the sale price is less than the purchase price, the capital gain is negative and the tax will be € 0.00.
After the conclusion of the purchase and sale of secondary housing in Spain, taxes are distributed as follows:
- The seller pays Land Value Gains Tax and Capital Gains Tax.
- The buyer pays the Stamp Duty in the property transfer tax regime.
Land Value Gain Tax (“Plusvalía Municipal")
This tax is calculated from the increase in the cadastral value of the land, depending on the year of construction (maximum 20 years and only full years are taken into account). For example, in Marbella, the following percentages are set for calculation:
- 1-5 years: 2.5%
- 5-10 years: 2.3%
- 10 – 15 years: 2.4%
- 15 – 20 years: 2.5%
If you bought an apartment in Marbella and sold it after 6 years, the increase in the cadastral value of the land will be 2.3% per year. The total percentage over 6 years will be 6 x 2.3% = 13.8%. The tax base is the value of the land at the time of purchase of the apartment. For example, if the land value was 50,000 euros 6 years ago, the tax amount will be 13.8% of 50,000 euros, that is, 6,900 euros.
Capital gains tax (“Plusvalía estatal")
This tax is charged on the difference between the cost of buying and selling real estate. The purchase price is the amount specified in the purchase and sale agreement, net of land value gain tax (IIVTNU) and real estate agency commission, including VAT.
The tax base (cost of sale) will be calculated as: Sale price = Price in the contract – Land value gain tax – (Real estate agency commission + VAT)
Interest rates:
- From the first 6.000 € – 19%
- From 6,000 € to 50,000 € – 21%
- From 50,000 € and above – 23%
These taxes are indicated in the Annual Income Statement (IRPF) and are payable in the next calendar year after the sale. For non-residents, the tax is paid as part of the declaration of non-residents.
Exceptions: People over the age of 65 who sell their main home for less than €350,000 are exempt from this tax when buying another main home.
Since January 2013, a tax receipt has been required to be submitted to the Property Register.
Important note
When selling real estate in Marbella or other Spanish cities, laws and regulations, as well as personal circumstances, may change. All the information provided is an indicative guide for potential sellers of real estate in Spain.