When selling your property in Spain, many sellers are not fully aware of what they are going to have to calculate in terms of costs before getting the real net figure. When you have made the decision of selling your property you ought to consider the costs involved before establishing the asking price. Property market on the Costa del Sol is competitive so getting the selling price spot on is essential to sell your property fast. Once you know what all the costs may be, you can then work backwards to calculate what price you need to sell at in order to walk away with the amount you have in mind in your hand. This is what you should really pre-empt before selling your property.
The first step in the process would be to value your property. Status Homes offers a free market valuation and consultation which will guide you to establish the right selling price. Then you must callow for any other costs before putting your property in the market. Generally the costs and taxes involved in selling your property in Spain will be between 10 and 15% per cent of the sale price. Make sure you take into account the following costs when selling:
Plus Valia Tax
Every seller has to pay a tax based on the incremental value of the land which the property occupies over the amount of years you have owned it. (eg: small apartments may be about 50 Euros per year, whereas villas may be a few hundred euros and more per year of ownership).
Mortgage redemption charges
It is common to find cancellation fees of the value of the mortgage. If you have a loan that is still outstanding at the point of sale. Your bank will probably have anywhere from a 0.5% to 1% cancellation charge on the balance of your outstanding mortgage.
Retention Tax (only for non-residents)
If you are a non-resident seller, then the buyer will keep 3% of the property value. This is to pay the Spanish Authorities retention tax on your behalf. Residents do not have any retentions made on them.
Capital Gain Tax
Capital gain tax is set at 21% on to all properties that are sold at a profit from the original purchase. In the case that you are making a loss still have to pay out the 3% retention tax. You can reclaim it back from the Spanish tax providing you have all the correct documentation and receipts to prove you have made a loss and paid your annual taxes.
Notary & Registry Fees
Notary and registry fees are generally calculated at 1% of the purchase price. Nevertheless sometimes they can be considerably lower.
Estate Agency Fee
The agent’s fee will be agreed on when first listing your property and it depends on the price of property and service required.
Would you need further information you are welcome to read our Sellers Guide. If you would like us to list your property please get in touch with us by email or phone.