Taxes When Selling A Property in Spain

If you are planning to sell a property on the Costa del Sol, you must get all the information regarding taxes as a seller, because there are some spends that many people don’t know about until the moment they are just about to sign the deed of sale. Here you will find all you need to know about taxes when selling your property in this touristic region of Andalusia.

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Capital Gains Tax

As you may know, this is a tax for the capital gains that you are getting with the sale. To be more specific, this is called IRPF in Spain and is calculated by firstly getting the difference between the sale price and the purchase price of the same property, and then calculating the percentage according to the following references:

  • 19% for the first 6000€
  • 21% from 6000€ to 50000€
  • 23% for more than 50000€

This capital gain tax is not always requested as there are some exceptions: when the gains are lower than the purchase price when the seller has more than 65 years old and situations of dependent people.

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The Exception of Re-Investment

But there is another exception. The seller does not have to pay this tax when the property on sale has been their main residential place and they are planning to invest in a new property to live, as the main home.

You need to consider that, if you are not resident in any region of Spain, you are responsible to pay, with no exception, this tax in a 19%, but since an agreement made in 2015, sellers residents in another EU country or EEA country which make part of the tax information exchange of Spain agreement, can be considered for the main-home exception, under some important requirements.

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Plus Valia

This is an important tax you should know about, as it is not the most common for both national and foreign sellers in Spain. This is needed to be paid to the City Hall and is a tax based on the rateable value of the property, which varies depending on the improvements of the surroundings and the terrain.

However, the Plus Valia is not just calculated on the rateable value itself, but also on the number of years that the property has been owned by the person who is selling it. So, the more years, the higher is the tax.  

In this way, the seller has the duty to pay the Plus Valia, although there is possible, by an agreement, to be paid by the buyer.

In general, these are the taxes you need to know about if you are planning to sell your property on the Costa del Sol, and they are the same in all Spain. It is important to consider the other spend you may have with this process, to take special attention to make all the reductions from the final gains in order to calculate well the taxes and not being damaged and to always be advised by a professional.

Buying or Selling Property in Spain? Contact Costa Space!

Costa Space is an independent estate agency based in Calahonda providing comprehensive property services for Marbella, Mijas Costa and Fuengirola areas in the Province of Malaga.

We are a progressive and innovative agency continuing to strive for excellence through providing sound property advice to our clients and using the latest in the next generation marketing. If you're interested in buying or selling your property on the Costa del Sol, please do not hesitate to contact us.

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