Author, Andrew Gibson
Last Updated on August 7th, 2024
Deciding to sell your property in Spain is not something to be taken lightly!
However, to reap the benefits of the sale proceeds, it’s vital to bear in mind the fees and taxes you will have to pay once the sale is agreed.
In this article, we will take a closer look at the costs involved when selling a property in Spain.
Article Contents:
- Costs overview of selling a property in Spain
- Spanish estate agent fees
- What tax is involved when selling a property in Spain?
- Lawyer fee costs when selling a property in Spain
- What other costs should non-residents be aware of?
Costs overview of selling a property in Spain
Let’s look at what outgoings you can expect to pay from your sale proceeds. These include estate agent commissions, lawyers’ fees, and taxes.
This table gives you an overall summary of the costs of selling a property in Spain.
Below we will go into more detail about each expense to explain each one precisely.
| Estate Agent Commission | Between 3-6% of property sale |
| Capital gains tax | Variable 19%, 21% or 23% of net profit |
| Income Tax Provision | 3% non-residents only |
| Energy certificate | Between 100-500 Euros |
| Pluslavia tax | Between 3-3.7% |
| Spanish land registry fee | Between 400-700 Euros |
| Legal fees | Approximately 1% of property sale value |
Spanish estate agent fees
When it comes to selling property in Spain, estate agent fees typically range from 3% to 6% of the sale price.
The exact commission percentage may differ. We recommend that you speak with your selected agent about the commission structure before signing any agreements. This will help you make the best decision.
Speak to as many real estate agents as you can before agreeing to a rate.
Remember that agents will most certainly want your business, so you are in a strong position to negotiate a good fee for your Spanish property sale.
An experienced agent will help you navigate the market, and be adept at attracting potential buyers.
They possess in-depth knowledge of the local market, pricing trends, and effective marketing strategies.
A competent real estate company will provide accurate property valuations, offer expert guidance, and negotiate favourable terms on your behalf.
With a wide network of potential buyers and access to various marketing channels, they will increase the exposure of your property in Spain.
A trustworthy agent will ensure transparency, handle legal documentation, and navigate the complexities of Spanish real estate regulations.
The ability to negotiate a favourable sale on your behalf is of course the end goal, and therefore it’s advisable to find the right agent who not only understands your needs but shares your enthusiasm for your Spanish property sale.
What tax is involved when selling a property in Spain?
Let’s get straight to the point, one of the main things to consider when selling a Spanish property is the tax implications.
When dealing with expenses in a foreign country, you must be armed with all the information you need to know.
As an individual selling a property in Spain, there are two main taxes to take into consideration.
The first is Capital Gains Tax, a term you are most probably unfamiliar with.
Capital Gains Tax is, quite simply, the tax you must pay on the total profit you make from your property sale in Spain.
The Capital Gains Tax in Spain is calculated by subtracting the purchase price from the sale price.
Your residency status also affects the amount of Capital Gains Tax you are required to pay when selling your property in Spain.
Non-residents from EU/EEA countries pay 19% Capital Gains Tax, whereas non-residents from other countries pay 24%.
Very occasionally, your property may be sold at a loss, and in this case, there would be no Capital Gains as Non-Resident taxes to pay.
However, as non-resident taxpayers, you will be required to submit Form 210 within the established legal period and must communicate in detail through this form the losses obtained from the transfer of the property, plus provide the documentation that supports these losses.
By submitting this form you can request the return of 3% that the buyer has paid at the signing of contracts at the notary from the Spanish Tax Agency.
Secondly, you are obliged to the Municipal Surplus Value Tax, which is called ‘Plusvalia’.
The Plusvalia, also known as land value tax is the tax applied to the increase of the value of the urban land once a property is transferred, sold, inherited, or received by donation.
Plusvalia tax is paid by the seller in the vast majority of cases.
This rate can vary for many different factors, including the length of time you have owned the property.
Depending on the municipality, the maximum rates are 3.7% for a period between 1 and 5 years, 3.5% for a period of up to 10 years, 3.2% for a period of up to 15 years, and 3£ for a period of up to 20 years.
The Plusvalia is a tax imposed by the local council, and it’s based on the increase in the cadastral value of the land since the time that you purchased your property.
Why does Plusvalia exist?
This tax tries to capture part of the increasing value of the location in which the property is located.
Whatever price you paid for your property originally, and regardless of how long you have owned it, as the years have passed, the local government in your area of Spain will have been implementing serval improvements in the surrounding areas.
These can include new infrastructures, schools, and healthcare investments for example.
The measure is intended to revalue the area, so you can now sell the property at a higher price due to that new environment.
Plusvalia tries to capture part of that to increase profits due to the improvements made by the town hall.
Lawyer fee costs when selling a property in Spain
Spanish property law can be extremely complex, and this can be especially daunting if you are not fluent in the language.
It is, therefore, essential to ensure you retain the services of a professional property lawyer.
Though the fees may be expensive you will most certainly find that they can advise and guide you through the process with efficiency and ease.
Lawyer fees in Spain can vary depending on various factors such as the complexity of the transaction, the region you are in, and the lawyer’s experience, but an average figure is usually 1% of the sale cost.
Here’s a top tip: take the time to shop around, do your research, and compare prices to find a reliable professional who won’t drain your funds.
The golden rule is to always ask a lawyer in Spain for his registration number (número de colegiado).
Personal references are always a good idea in our opinion, perhaps ask your real estate agent for their recommendations, they are to be able to offer some sound advice.
Something to remember. Lawyer’s fees are 100% tax-deductible!
The fees you pay them to sell your Spanish property are fully deductible from the Capital Gains Tax, meaning you pay less tax when hiring a reputable firm to handle your sale.
When selling your property in Spain, you as the seller are not obliged to pay the notary fees, but you most certainly will have other expenses to consider such as the in-depth searches that need to be done on the property.
The only instance where you, as a seller, are required to pay notary fees will be if the transaction falls through.
What other costs should non-residents be aware of?
If you are a non-resident selling a property in Spain, there are some additional costs that you need to bear in mind and budget for.
One such expense is the Spanish land registry fee, which ensures that the sale is recorded officially. The cost is calculated by the property’s purchase price, and it’s a vital aspect of ensuring that the ownership is transferred correctly.
Land registry fees are fixed by Spanish regulations and depend directly on the price of the property, although they are usually between 400 and 700 Euros.
You may well also incur fees that are related to the tax office, for example, the issuing of a tax certificate.
We strongly advise that you consult with a local tax expert.
These are known as a ‘gestoria’ who can guide you through the taxation related to your property sale in Spain, ensuring you avoid any unwelcome surprises during the sales process.
As we have detailed in this article, selling a property in Spain certainly comes with some costs, but preparing in advance and seeking expert advice can make the process seamless.
Knowing costs and tax implications before you list your property for sale in Spain means that you are already ahead of the game and prepared for what lies ahead.
Quick Summary
- Estate agent commission is usually between 3% to 6% of the property sale price.
- Taxes on a Spanish property sale include two: Capital Gains Tax and Pluslavia Tax.
- Hiring a Lawyer is important for property sales in Spain, it can save you money on taxes paid and the fee is around 1% of the sale price.
- Other costs include Land registry fees, tax certificates, and property searches during the sale process.
Use Key Currency to easily transfer funds for your Spanish property sale
Now that the costs of selling a property in Spain are covered, the other essential aspect of selling your Spanish property is how to manage the money transfers.
If you are unfamiliar with complicated currency conversions, such as Euro to Pound, Key Currency can guide you through this process and eliminate hefty bank fees along the way.
Our team of experts will ensure you receive the very best exchange rate for the proceeds of your Spanish property sale.
As specialists in international bank transfers, we work with you to make it easy and cost-effective to move your funds from the sale.
With competitive exchange rates and transparent fees, Key Currency consistently takes away the worry of how to manage the transfer of your sale funds. We’ve helped thousands of people transfer the proceeds of their property sale in Spain to the UK.
We are committed to providing a service of the highest integrity and safety.
Key Currency is an FCA-regulated Authorised Payment Institution and as such, all money transfers are conducted through safeguarded client accounts.
Get a free quote today and maximise the funds of your property sale in Spain!
