Costs of selling a property in Spain: a complete overview

What costs are involved in selling your Spanish property? When selling property in Spain, as a seller you need to take into account various tax and administrative costs, including the Plusvalia Municipal, the Capital gains tax and fees for brokers and lawyers. In total, selling costs for a non-resident typically amount to between 5% and 15% of the sale price, depending on the added value realised and the region.

Read more about the sales process in Spain.

In this article, we will analyse each cost item in detail so that there are no surprises at the notary.

1. Plusvalia Municipal (Municipal Capital Gains Tax).

What is the Plusvalia Municipal? The Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU), better known as the Plusvalia Municipal, is a municipal tax on the theoretical increase in value of the land on which your property stands. The amount depends on the cadastral land value (valor del suelo) and the period you owned it.

Major regulatory change (2022)

Since the law was changed in 2022, the system has become fairer. Do you sell at a loss? Then you do not pay Plusvalia. Previously, this tax was always due even if you sold the property cheaper than you bought it.

• Calculation: You may choose between two calculation methods these days, obviously choosing the option that is most advantageous to you:

  1. The objective method: Based on cadastral value multiplied by a coefficient (depending on length of possession).

  2. The real method: Based on actual profit (difference between purchase and sale price).

Expert Quote: "Many sellers wrongly pay the municipality's automatic calculation. Always get a specialist to check whether the 'real method' might not save you hundreds of euros, especially if the market value rose less quickly than the cadastral tables."

2. Value-added tax

How much tax do you pay on realised capital gains? As a non-resident in Spain, you pay 19% capital gains tax on the net profit you make on the sale. The net profit is the sale price minus the purchase price, in which you may deduct certain costs (such as refurbishments with invoice, notary and registration fees on purchase).

The 3% Retention (Retained at the notary)

A crucial mechanism in the Spanish sales process is the 3% retention.

• The buyer is legally obliged to 3% of the total sales price withheld and paid directly to the Spanish tax authorities (Hacienda) via Form 211.

• This serves as an advance on your final capital gains tax.

Calculation example: Suppose you sell a property for €300,000.

• The buyer will pay you just €291,000.

• The remaining €9,000 (3%) will be paid directly to the tax authorities in your name.

Refund or additional payment?

• Profit tax < 3% retention: You will be refunded the difference. Note: The processing time for repayment averages 6 to 12 months.

• Profit tax > 3% retention: You must top up the remaining amount within 4 months of sale using Form 210.

3. Compulsory Documents and Certificates

Which certificates do you need to provide? For a valid deed of sale, you will need several documents. The costs for this are borne by the seller and amount to on average €300 to €500, depending on the region and the size of the property.

The key documents are:

• EPC certificate (Certificado de Eficiencia Energética): Mandatory for any property sold or rented out.

• Cédula de Habitabilidad (Housing Permit): Proof that the property meets habitability standards (required in Catalonia).

• Certificate from the owners' association (Comunidad): Prove that you have no outstanding debts with the community.

Read more about the documents required in a sale.

4. Notarial Charges and Power of Attorney

Who pays the notary? According to Spanish law (ley), the notary fees are largely borne by the seller, unless otherwise agreed. However, in practice - and certainly in regions such as Costa Blanca and Costa del Sol - it is common for the copper pay all notary fees. Always check this in your sales contract.

Costs Notarised Power of Attorney Can't be physically present at the signing ("Firm")? Then you can work with a notarised power of attorney (Poder Notarial).

• Costs: Count on approximately € 500 - € 700 including translation and apostille if prepared in Belgium Netherlands), € 200 at a notary in Spain.

• Opinion: A power of attorney gives us clout to also take care of administrative matters for you. This means you do not have to be present when the deed of sale is executed.

Read more about notarised power of attorney.

5. Honours of Professionals

What do the broker and lawyer cost? Professional guidance is essential but often represents the biggest cost.

• Brokerage commission: In Spain, brokerage fees are usually covered by the seller paid. Rates vary widely by region:

  • Costa Blanca & Levante: Often around the 5-6% + VAT (21%).

  • Andalusia & Costa del Sol: Commissions can vary, sometimes lower (3-4%), but also 5% in the luxury segment.

• Legal guidance (Lawyer): A specialist lawyer usually charges 1% of the sale price or a flat rate (e.g. €2,500 + VAT). Given the complexity of the Plusvalia and the 3% retention, this is a necessary investment to avoid tax penalties and look after your interests.

FAQ: Frequently asked questions about sales charges in Spain

1. Who pays the estate agent fees in Spain, the buyer or the seller? In most Spanish regions, the seller pays the estate agent's commission. This amount is deducted from the sale price at the notary. Count on an average of 5% excluding VAT.

2. What happens if I sell my house in Spain at a loss? If you sell at a loss, since the 2022 law change, you need to no Plusvalia Municipal pay more. You will also not owe capital gains tax (capital gains tax). However, you must correctly declare the sale to the tax authorities to claim the exemption.

3. When will I get the 3% retention back from the Spanish tax authorities? If you have not realised a capital gain (or the tax is lower than the amount withheld), you can apply for the refund. The Spanish tax authorities legally have 6 months after the application to refund, but in practice the process can take up to 1 year.

4. Can I deduct remodelling costs from income tax? Yes, investments that have structurally increased the value of the property (such as an extension or swimming pool) and for which you have official invoices (facturas with IVA) are deductible. Maintenance costs (such as painting) are usually not deductible.

About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.