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ValTay0607 Dec 14th 2021 10:28 am

Costs of Selling Spanish Property
 
Wife & I are selling our property in the Valencian region for £125,000. If anyone has sold post-Brexit, can they kindly advise on costs incurred i.e. Agent's commission, Solicitors fees, etc.etc. TIA.

snikpoh Dec 14th 2021 1:22 pm

Re: Costs of Selling Spanish Property
 

Originally Posted by ValTay0607 (Post 13081096)
Wife & I are selling our property in the Valencian region for £125,000. If anyone has sold post-Brexit, can they kindly advise on costs incurred i.e. Agent's commission, Solicitors fees, etc.etc. TIA.

Don't know of any figures but a friend recently sold and was stung with CGT in Span as well as CGT in UK

ValTay0607 Dec 14th 2021 1:33 pm

Re: Costs of Selling Spanish Property
 
Surely, CGT is only applicable if one sells for more than bought and a percentage is payable on the the profit margin?

Sunseeker1st Dec 14th 2021 2:09 pm

Re: Costs of Selling Spanish Property
 
We sold last month in Portugal and Real Estate Agent fee was 1.5% and Lawyer just under 1% but there was lots of extra work involved. We had owned for 22 years.

Barriej Dec 14th 2021 2:17 pm

Re: Costs of Selling Spanish Property
 

Originally Posted by ValTay0607 (Post 13081096)
Wife & I are selling our property in the Valencian region for £125,000. If anyone has sold post-Brexit, can they kindly advise on costs incurred i.e. Agent's commission, Solicitors fees, etc.etc. TIA.


This is a year or so old but might help. I would suggest asking the solicitor you are using as they should advise, saying that Ive found most don't ever volunteer info you have to specifically ask...

Commission varies, our local agent charges around 6%.

Selling property tax: How much is selling property tax in Spain?

When selling a property in Spain you need to be aware of the payment of Plusvalia and Capital Gains Tax.
The payment of Capital Gains Tax is between 19% and 24% and Plusvalia would be a percentage of the sale.
Plusvalia is paid to the local Town Hall where the property is located.
The calculation is based on the increase of the value of the land, known as valor catastral, and the number of years you were the owner.
The land value is in the IBI receipt and it increases every year, regardless of the real market value of the house, so Plusvalia is due even if you lose money selling.
This matter is now being challenged in the Spanish Courts, but to no practical effect, as every Town Hall still demands the payment.
If you wish to avoid surprises try to contact your Town Hall to get a calculation before selling.


When the seller is a non-resident, the buyer could be found liable for the payment, so it is important to check by you or your lawyer that the Plusvalía Municipal has been paid within 30 days of the sale.
Capital gains tax
As a seller, you will pay capital gains tax on your profits from the sale.
Capital Gains Tax is 19% for non residents from EU/EEA countries or 24% for non residents from other countries.
According to Spanish tax laws, if you’re a resident, you are applied a scale between 19% and 23% and can also get tax relief if you have lived in the property for at least three years before selling it.
As a seller, you need to file a tax return taking in account the 3% of purchase price that was initially retained by your buyer and pay the remainder within three months after the sale.

If the amount withheld by the buyer exceeds the CGT payable, the seller may claim a refund of the excess amount, so it is important to obtain proof of the original 3% payment from the buyer, in order to file your return and fill the necessary forms.

Chipmonk Dec 14th 2021 2:20 pm

Re: Costs of Selling Spanish Property
 

Originally Posted by Barriej (Post 13081155)
This is a year or so old but might help. I would suggest asking the solicitor you are using as they should advise, saying that Ive found most don't ever volunteer info you have to specifically ask...

Selling property tax: How much is selling property tax in Spain?

When selling a property in Spain you need to be aware of the payment of Plusvalia and Capital Gains Tax.
The payment of Capital Gains Tax is between 19% and 24% and Plusvalia would be a percentage of the sale.
Plusvalia is paid to the local Town Hall where the property is located.
The calculation is based on the increase of the value of the land, known as valor catastral, and the number of years you were the owner.
The land value is in the IBI receipt and it increases every year, regardless of the real market value of the house, so Plusvalia is due even if you lose money selling.
This matter is now being challenged in the Spanish Courts, but to no practical effect, as every Town Hall still demands the payment.
If you wish to avoid surprises try to contact your Town Hall to get a calculation before selling.


When the seller is a non-resident, the buyer could be found liable for the payment, so it is important to check by you or your lawyer that the Plusvalía Municipal has been paid within 30 days of the sale.
Capital gains tax
As a seller, you will pay capital gains tax on your profits from the sale.
Capital Gains Tax is 19% for non residents from EU/EEA countries or 24% for non residents from other countries.
According to Spanish tax laws, if you’re a resident, you are applied a scale between 19% and 23% and can also get tax relief if you have lived in the property for at least three years before selling it.
As a seller, you need to file a tax return taking in account the 3% of purchase price that was initially retained by your buyer and pay the remainder within three months after the sale.

If the amount withheld by the buyer exceeds the CGT payable, the seller may claim a refund of the excess amount, so it is important to obtain proof of the original 3% payment from the buyer, in order to file your return and fill the necessary forms.


Plusvalia has now been scrapped ( but some other tax is replacing it!!)

Loafing Along Dec 14th 2021 2:25 pm

Re: Costs of Selling Spanish Property
 
Surely all the above depends on whether or not they are buying another property as there is a 2 year window to re-invest in a new home and also if they are over 65 years as there are certain fiscal advantages.

Fred James Dec 14th 2021 5:32 pm

Re: Costs of Selling Spanish Property
 

Originally Posted by Loafing Along (Post 13081159)
Surely all the above depends on whether or not they are buying another property as there is a 2 year window to re-invest in a new home and also if they are over 65 years as there are certain fiscal advantages.

Only if they are tax resident. So far that seems unclear.

spainrico Dec 14th 2021 6:03 pm

Re: Costs of Selling Spanish Property
 
Impossible to answer without knowing more...

Few pointers here

https://expatsmagazine.org/selling-property-in-spain/


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