If you want to sell your house or flat in Spain there are a few fees you might want to be aware of before you start.
Property conveyancing is not as easy as it seems, anywhere in the world you are going to need to meet some standards and pay some fees to get the sale completed. Here are the basic things you need to know about the costs involved:
The buyer has to withhold 3% of the purchase price if you are a non-resident in Spain
Since selling a property is a taxable income in Spain, and most parts of the world, the acquirer of the property is under obligation to withhold a percentage of the purchase price, which is at the moment 3%. This amount will have to be paid to the treasury department within a month’s time. This is viewed as a down-payment to the state in case the the seller’s equity increases. Also, this only has to be done if the seller is not a Spanish citizen.
You have to pay Capital Gains Tax
The payment of this tax will depend on your location since it’s a municipal tax that is calculated on the basis of the increase in value of the land on which the property is located.
It will also depend on the percentage of mutual share and the years that have passed since the last conveyance.
The seller must pay Capital Gains Tax when there is an increase or a loss of equity but a refund can be requested in case there is a loss of equity by submitting a specific form to the Spanish Tax Office.
Real Estate agents also get a cut from the price
You need to take into consideration that your Real Estate agent will ask for up to 7% of the selling price (plus the VAT tax that in Spain is currently 21%).
What can Lexidy do for me?
At Lexidy we offer a variety of services related to property conveyance with a fixed price per service. Get a free consultation and see what we can do for you.