08 Jun 2023

Necessary Calculations to Sell Your Property in Spain

If selling your property is part of your plans for 2023, you must take into account the expenses and taxes associated with this transaction and set an appropriate selling price. The money received from the sale of a property is never net, as we have to pay the expenses and taxes associated with the transaction. At Casa Select, we want to make your life easier and ensure that you know what are the necessary calculations to sell your property in Spain and it doesn’t cause unnecessary headaches. That’s why in this article, we will share the necessary calculations you need to consider before putting up the “For Sale” sign in front of your property.

First and foremost, let’s talk about the selling price. Establishing the price to sell a property in Spain is not easy, as it depends on various factors such as location, condition, market demand, and age. However, this is the first step you need to take because based on that figure, the corresponding expenses and taxes will be applied. The price depends on you and your home. Keep in mind that there is a minimum price at which we must declare the sale of the property, but the regulations give you the right to decide the price at which you want to sell your property in Spain.

 Next, let’s consider the taxes. Once the selling price of your property has been established, we can calculate the taxes required to formalize the sale.

IRPF (Capital Gains Tax)

When you are a Spanish fiscal resident, the Capital Gain Tax is paid the following year, in the income tax declaration. It involves paying taxes on the capital gain obtained, which is the difference between the acquisition value (purchase price) and the transmission value (selling price).

When you are selling as non-resident, a 3% of the selling price will be retained at completion at the notary. When the IRPF is higher than the 3% retention, you will receive an additional bill from the tax office. If the IRPF is less than the 3% retention, you have to claim your money back within a month after completion.

It’s important to note that you don’t have to pay the Capital Gain Tax when you sell your main residence in which you lived for more than 3 years and you are above 65+ years old.

IBI (Council Tax)

The IBI is an annual expense related to any property we own. It is not specifically related to the sale, but it is an expense you should take into account. As a municipal tax, the amount to be paid depends on the municipality where the property is located.

Plusvalía (Municipal Capital Gains Tax)

This tax is paid based on the increase in land value. Unlike the IRPF, it is not directly related to the property price but it is calculated on a percentage of the cadastral value.

Finally, let’s consider the expenses. To sell your property in Spain, it is not enough to pay all the taxes. We must ensure that all the documents are up to date, and most of them involve additional expenses. Here are the most important ones that you should consider:

First Occupation License or DAFO

It costs around 100 euros and takes about 45 days to process. This document confirms that the property  has been built with the correct licenses and meets the necessary requirements to be inhabited.

Nota Simple (Property Registry Report)

Its price is 9.02 euros. It is an official document issued by the Property Registry that provides information about the property’s owner and any encumbrances it may have at the time of the sale.

Mortgage Cancellation

This process usually costs around 1,000 euros. When selling a property, it is necessary to ensure that it is free of encumbrances, so the cancellation of the registered mortgage must be processed.

Energy Efficiency Certificate

It costs between 60 and 200 euros. It is a mandatory document since 2013 that indicates the energy consumption level of the property.

Certificate of community payments

It costs around 30 euros. This document certifies that you are up-to-date with the payments of community fees.

Last, Real Estate Agency Fees

The fees are between 3% - 5% of the sales price, depending on the type of contract, service package and property.

It is important to consider all these expenses before deciding to sell your property in Spain, so you are not caught off guard. If you are considering selling but are unsure about how to make the calculations or how to sell your property in Spain, contact us, and we will do it for you. At Casa Select, we have the expertise and experience in the real estate market to guide you through the process and handle all the necessary calculations and paperwork on your behalf.

Selling a property in Spain involves more than just setting a price and putting up a “For Sale” sign. It requires careful consideration of the expenses and taxes involved to ensure a smooth and successful transaction. By working with our professional team, you can rest assured that all the necessary calculations will be taken care of, allowing you to focus on other aspects of your life during this important transaction.

Our knowledgeable agents will assess your property, taking into account its unique features, location, and market considerations to help you determine the optimal selling price. We will also guide you through the intricacies of the Spanish tax system, ensuring that you understand and fulfill your tax obligations, such as the IRPF, IBI, and municipal gains tax.

Additionally, we will assist you in gathering all the required documentation, including the First Occupation License or DAFO, nota simple, mortgage cancellation, energy certificate, and certificate of community payments. Our team will handle the administrative procedures and associated costs, saving you time and effort.

Selling your property in Spain can be a complex process, but with the right guidance and support, it can also be a rewarding and successful endeavor. At Casa Select, we are committed to providing you with personalized attention, transparency, and professionalism throughout the entire selling process.

So, if you are considering selling your property in Spain, don’t hesitate to reach out to us (https://www.casaselection.com/en/contact-us). We will provide you with a comprehensive assessment of your property, explain the necessary calculations and expenses involved, and offer our expert guidance to ensure a smooth and profitable sale. Selling property in Spain doesn’t have to be stressful when you have the right team by your side.

Contact Casa Select today and let us take care of the necessary calculations to sell your property in Spain. We are here to make the process easier and help you achieve your selling goals.

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