If you are wondering how much does it cost to sell a house in Spain, there are differences between Spanish Residents and Non-Residents.
Cost of selling a house in Spain for Spanish Residents
If you are over 65 years of age:
- You are exempt from Capital Gains Tax if you sell your permanent place of residence (you will need to prove that you lived there for at least 3 years).
- You will have to pay Plusvalía Tax (a local tax on the profit).
- You will have to pay Council Tax for the year that you sell your house.
- If you need to add to or amend the description of the house through the “New Building Declaration”, you will have to pay the Architect, Notary, Land Registry Fees and Stamp Duty Tax base on the value of the extension.
- You will need to provide an energy certificate.
- If your house has a mortgage, you are liable for any costs that may arise to cancel it, such as Notary and Land registry fees.
If you are under 65 years of age:
- The Capital Gains Tax from the sale of a house will be applied through Income Tax. Its cost is shown on the following scale:
- 6.000 euros and under: 19%
- From 6.000,01 euros up to 50.000 euros: 21%
- From 50.000,01 euros: 23%
- You will be exempt from Capital Gains Tax if your house has been your main home for the last 2 years and, when you sell the property, you reinvest your money in a new home in Spain in the following two years.
- This tax relief is proportionate to the profit made at the time of the sell and the amount reinvested.
- You will be exempt if the new home costs more than the sale price of the old home. If only 50% of the sale profits are reinvested into a new home, then only half is exempt.
- If there is a mortgage on the house being sold, then the net sale profits must be reinvested to avoid Capital Gains Tax.
- An annual tax return must be made declaring the figures for the sale of the house. If these figures are not declared, the Spanish Tax authorities may not allow the exemption.
- The reinvestment exemption is only available to Spanish Tax Residents. However, neither the main residence nor the new home need to be in Spain to qualify.
Cost of selling a house in Spain for Non-Residents
- You will not be exempt from Capital Gains Tax if you sell your house unless you did not make any profit.
- There is a peculiarity that any non-resident person or entity who wants to sell a property should advance a 3% retention of the sale price. When the Tax is lower than the 3% retained, you can apply with the Tax Office for a refund of your money.
- An individual is not considered a Spanish resident when they live in Spain for less than 183 days.
- The Capital gains Tax is calculated in the same way as income tax for residents. However, the tax rate would be 21% on the gain calculated.
- You will have to pay Plsuvalía Tax (rate).
- You will have to pay Council Tax for the year that you sell your house.
- If you need to add to or amend the description of the property through the “New Building Declaration”, you will have to pay the Architect, Notary, Land Registry Fees and Stamp Duty Tax base on the value of the extension.
- You will need to provide an energy certificate.
- If your house has a mortgage, you are liable for any costs that may arise to cancel it, such as Notary and Land registry fees.
Your lawyer can assist you with the conveyance process and will be able to provide you with a budget.
