|
SELLING YOUR PROPERTY;
With the Costa del Sol remaining one of the most desirable areas to move to in Spain and with continued demand for new and resale properties and prices rising at a steady pace now is a good time to sell your property if you are thinking about moving.
There are numerous fees and taxes to be paid from the sale of the property; these are; Spanish capital gains tax, transfer costs, estate agents commission and lawyers fees.
CAPITAL GAINS TAX; All properties sold in Spain will come under the capital gains tax legislation, the rates are fixed at 35% for non-residents and 18% for residents, this is charged on the difference in the property value you declared when you purchased the property and the value you are selling the property for. In addition if you are a non-resident the buyer will withhold 5% of the purchase price and pay this to the Spanish tax agency direct.
Exclusion from capital gains tax can be offered if;
- You originally bought your property before 1987.
- You are 65 years old, a resident, and you have lived in your home for a minimum of three years.
- You are resident and you use the full purchase price to buy another principal residence in Spain.
TRANSFER COST; The sale of a Spanish property attracts a transfer cost which can be as high as 10%, this in addition to that capital gains tax.
ESTATE AGENTS COMMISSION; Estate agents on the Costa del Sol charge varying rates of commission, it pays to shop around and negotiate.
The standard rate is 5% but can be as high as 10% in some cases, if you want the agent to advertise on one of the many property networks the fee will increase to between 7% & 10%. This fee is payable on the conclusion of the property purchase and should include IVA (tax).
LAWYERS FEE; Upon the conclusion of the sale of your property you will need to pay your lawyers fees, these are generally based at 1% of the selling price and again should include IVA. All of the above costs can be offset against your capital gains tax liability as costs associated in selling your property.
|
