The True Cost of Selling Spanish Real Estate: Taxes and Fees Explained
When selling a property in Spain, you’ll need to pay certain taxes and fees. It’s important to know about these costs so you can manage your money better.
One of the biggest expenses is the capital gains tax. But don’t forget about other payments like the Plusvalía tax and legal fees. We will explain each of these costs to help you understand better.
You can read more about the complete process of property sale in Spain in our guide.
Taxes Involved in Property Sales
Capital Gains Tax for Sellers >
Capital Gains Tax for Fiscal Residents >
Capital Gains for Non-Residents >
Overview of Taxes and Fees in Property Sales
Breaking Down Capital Gains Tax for Sellers
When you sell a property in Spain, you usually need to pay Capital Gains Tax (CGT). This tax is really just income tax on the profit you make from the sale. The CGT rate changes depending on whether you live in Spain and how long you owned the property.
It’s very important to calculate your CGT correctly. You should think about any deductions or exemptions that could apply to you. For example, if you live in Spain and have owned the property for a while, you might get a lower CGT rate.
It’s a good idea to talk to a tax advisor. They can help you with tailored advice and find ways to reduce your tax liability.
Capital Gains Tax for Fiscal Residents
For people who are tax residents in Spain, the capital gains tax (CGT) rates go up as profits increase. This means that if you make more money, you pay a higher tax rate. Your capital gain joins your total income for the year and is taxed according to the different income tax levels.
As of 2025, if you have gains over €200,000, the highest tax rate is 26%. However, residents in Spain can take advantage of several deductions and exemptions. You can find more details in the sections called “Tax Reductions on Capital Gains for Tax Residents and Non-Tax Residents” and “Tax Reductions on Capital Gains for Fiscal Resident only.”
We suggest that you talk to your financial advisor about how capital gains tax in Spain affects your specific situation.
Capital Gains for Non-Residents
If you live outside Spain and sell a property there, the capital gains tax works a bit differently. Non-residents pay a flat CGT rate of 19% on any profit from selling a Spanish property.
You should also know that buyers must withhold 3% of the sale price. They send this amount straight to the Spanish tax office.
If your calculated capital gains tax is less than 3%, you can ask for a refund from the Spanish tax office. Just make sure to submit the right documentation.
Tax Reductions on Capital Gains for Tax Residents and Non-Tax Residents
Both residents and non-residents alike may be able to reduce their capital gains tax. For example, if you bought your property before 31 December 1994, then you may be eligible for certain deductions. However, these deductions are capped at €400,000.
Equally, if you bought your property between 12 May 2012 and 31 December 2012 then your capital gains tax liability is cut by 50%.
Tax Reduction
Eligibility
Reduction based on purchase date
Properties acquired before December 31, 1994 (up to €400,000 reduction)
50% exemption
Properties acquired between May 12, 2012 and December 31, 2012
Tax Reductions on Capital Gains for Fiscal Resident Only
Tax cuts on capital gains in Spain are for fiscal residents only. It is important to understand these cuts if you are selling property in Spain. Fiscal residents can enjoy lower tax rates on capital gains. It is a good idea to talk to a tax advisor for more details on possible deductions. By learning about the tax laws and getting help, you can improve your finances when selling property in Spain as a fiscal resident.
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Costs for Selling a Property
In Spain, sellers face more costs when selling their property besides the taxes mentioned before. A major cost is the estate agent’s fee. This fee can change but usually is between 3% and 6% of the sale price. It is important to understand these fees clearly before you sign any agreements.
There are also legal fees. These cover what a lawyer does to make sure the sale goes smoothly and is legal. The amount can vary, so it’s best to negotiate these fees ahead of time.
Another cost is getting an energy performance certificate (EPC). This certificate is required for all property sales. The cost of an EPC depends on the type of property and its size, but it generally costs around 150 euros.
Purchase Price
The purchase price of the property is the first step in figuring out the capital gains tax. This amount is what you paid when you bought the property. It is important to keep documents that show the purchase price, like the original contract of sale, escritura de compraventa, or title deed.
You should hold on to all papers connected to the initial purchase. These records will help show the property’s cost accurately. Getting this number right is important because it affects how you calculate the capital gain.
Sales Price
The sales price is the agreed amount that a buyer will pay for a property. This number comes from talks between the seller and the buyer. A property agent often helps them during these talks.
The difference between the sales price and the purchase price shows the capital gain. This gain is what CGT is based on. It’s important that the sales price shows the current market value of the property. This way, both parties can feel good about the deal.
Withholding 3% for non-residents (seller)
When you sell property in Spain, and you are not a resident, you need to know about withholding tax. The buyer must hold back 3% of the sale price, and they will send this money to the Spanish tax office for you.
The 3% holdback is normal in property sales with non-residents. This is done to make sure that the Spanish tax authorities get the taxes that are due from non-residents. It applies whether the seller makes a profit or a loss. Even though this may seem like extra work for sellers, its main goal is to make the tax collection smoother and to deal with any tax avoidance.
Non-resident sellers can get back any tax they overpay. After they calculate and pay their capital gains tax, if the 3% withheld is more than what they owe, they can ask the Spanish Tax Office for a refund.
PlusValía Tax: What Sellers Need to Know
Municipal Capital Gains Tax, also known as Plusvalía, is a local tax. The Plusvalía tax is also called the “Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana.” It is a local tax on the rise in value of the land where the property sits. This tax depends on things like the property’s location, the land’s cadastral value, and how long the owner has had it.
It is important to understand that Plusvalía is different from CGT. It is based on how much the land’s value has gone up during the seller’s time of ownership. When a property is sold, the seller usually has to pay this tax to the local council. Sometimes, the buyer might have to pay it instead. Also, keep in mind that Plusvalía can apply even if the property is sold for less than what it cost.
Sellers should include Plusvalía in their selling costs.
Estate Agent’s Fee for Seller
Working with a real estate agent is common when you sell property in Spain. Real estate agent commissions usually range from 3-5% of the sale price. They help market your property, viewings, find buyers, and handle negotiations. Their help is very valuable during the sale of your property. You need to include this expense in your budget when planning to sell your property. Talk it over and agree on the brokerage commission with your estate agent before you move forward. This way, you can avoid any confusion later on.
The agent’s fee is often taken out of the sale proceeds before you get your payment. Before you sign any papers, make sure to understand the agent’s fee structure. This can change based on the agency and local market conditions.
Keep in mind that while the estate agent’s fee adds to your selling costs, a good agent can make the selling process and communication with the purchaser much easier.
Legal Fees in the Sale Process
Engaging a lawyer is a smart choice when selling property in Spain. Lawyers help you through the legal part of the sale and make sure everything is done right, protecting your interests. They guide you through the tricky parts of Spanish property law.
Lawyers are skilled in handling property transactions. They assist with contracts, checks, and the final deed signing. Legal fees can vary depending on how complicated the sale is, but they usually are based on a percentage of the property’s sale price.
It’s a good idea to talk to different lawyers. Compare their experience, special skills, and fee structures. This way, you can choose the best lawyer for your property sale.
Costs for cancelling the mortgage for Seller
When selling a property in Spain, sellers need to know about the costs of canceling their mortgage. These costs usually include fees from the bank or financial institution. These fees can change based on how much is left on the loan and the terms of the contract. It is important to talk with a financial advisor or the lender to understand the exact costs involved in ending the mortgage before completing the property sale.
Ready to Sell Your Home in Spain?
Selling property in Spain involves managing key documents and costs, whether you’re a resident or not. Understanding taxes, fees, and commissions is crucial. Though the process can be complex, with some preparation and advice from estate agents, most issues in selling property in Costa Blanca can be overcome. Ensuring all legal requirements are met helps control costs and ensures a smoother sale.
Contact our professionals today for expert help in selling your property in Costa Blanca.
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