Selling a property in Spain comes with some costs. In our previous articles, we discussed the sales process. This article will explain more about selling costs.
The plusvalia muncipal is the municipal capital gains tax and can be high. This tax depends from municipality to municipality and is calculated based on the cadastral capital gain. So the longer you own the property, the higher the tax will be. However, the regulations were changed in 2022, so you do not have to pay tax on a sale with no capital gain.
Capital gains tax
On the sale of property in Spain, you pay capital gains tax. For non-residents, the rate is 19% on the actual capital gain. You can then also take into account some deductible costs.
However, you will have to take into account a retention of 3% of the sale price. For example, if you sell a property for €100,000, the retention will be 3%, regardless of the capital gain realised. You can reclaim the overpaid capital gains tax from the tax authorities. However, the repayment can take a long time: count around 6 months - 1 year anyway.
Application for mandatory documents
Applying for various mandatory documents (e.g. EPC certificate) also involves a number of costs. Usually, the cost of a technical expert or architect is around 300 euros. This price does depend on region and the size of the house.
Notarised power of attorney
If you cannot be present yourself for, among other things, requesting documents and signing contracts, you can grant a notarised power of attorney. This can be done both in Belgium and Spain. The cost is around €500.
Honours of professionals
Finally, there are the fees of professional service providers such as your counsel and brokers. Counsel's fees depend on the complexity of the case. Brokers' commissions, on the other hand, vary from region to region. For example, commissions are lower in Andalusia than in Costa Blanca.
It is not obvious to make an overall cost estimate of a property sale in Spain. After all, selling costs depend on the capital gains realised, the length of time you own the property and the region.
Update: April 2022