NickReve

Hi all good people!

I bought an apartment in a bad shape and renovated it for 5 years ago and now I have decided to sell it. I have the following questions:

* I don't want to pay 6% commision to an agent. Can I sell this myself? If yes please tell me how.

* Where can I advertise my property free of charge on the internet?

* If I sell it with profit, can I deduct the expenses that I have had so I would pay less tax?

I appreciate all the help I can get and thank you!

missile

* I don't want to pay 6% commission to an agent. That is high, circa 3% is normal.

* Can I sell this myself? If yes please tell me how. Yes, you can advertise in local shops, paper, on line. However if you have to ask, perhaps DIY selling is not for you? IMHO a good agent is worth his fee. He will steer you through what can be a minefield. He may even save you more than his fee by securing a better offer than you could achieve DIY.

* Where can I advertise my property free of charge on the internet? Yes, but paid sites will have a higher profile and attract more hits.

* If I sell it with profit, can I deduct the expenses that I have had so I would pay less tax? Yes, you will need to show evidence. I would suggest you employ a Gestor.

Fred James

You can deduct any buying and selling expenses, but renovation expenses are a bit more complicated. You can claim for improving or enhancing the property, but not maintenance expenses. As a general rule of thumb, if you have a proper building licence for the work you did it may be OK, without a building licence and receipts you cannot make any deductions.

As Missile said, this may be better handled by a gestor as he will know all the tips and tricks involved in minimising any gain.

Loafing Along

As a private individual you can advertise your property for free on Idealista, one of the biggest property search engines in Spain :https://www.idealista.com/info/publicar-anuncio

NickReve

Thanks for your replies! Do you know any good agents in Torrevieja area?

missile

Not in Torrevieja.

amideislas

If you're non-resident, you'll also be liable for 19% of your profit in Capital Gains Tax. If you're resident and over (65?) years of age, the Capital Gains tax is not applied.

You can eliminate the capital gains tax by buying another house for at least the value of your profit. You can buy the other property anywhere in the EU, not just Spain.

So, if you're non-resident and paid very little for the house, and sell it for a lot, Hacienda will be breathing down your neck for their take (and they will come after you in your residence anywhere in the EU). They will automatically take 3% off the sale price of the house at the time of the sale (the buyer is obliged to take it from the sale price and hand it over to them, and give you the rest), but you can (eventually) claw it back by investing in another property, or proving that your profit was less than 3%. It can take years though, if successful.

Dondurma

You can eliminate the capital gains tax by buying another house for at least the value of your profit. You can buy the other property anywhere in the EU, not just Spain.


I am not sure the above is correct

I believe you must invest the FULL SALES PROCEEDS-not just the profit-in another property to avoid CGT

amideislas

Well that's pretty much what I said. The taxable proportion is the GAIN, not the total of proceeds. But they will take 3% no matter what. Then you have to prove you are entitled to get it back. It can take years to get the 3% back.

But if you need some verification, try the government website (in English):
Taxation of urban buildings owned by non-resident individuals

Fred James

You have to reinvest the whole of the sale proceeds in the new house. Also the house has to have been your habitual residence for three years or more. Therefore this concession does not apply to sales by non residents.

The same restriction also applies to over 65s.

missile

It may take years in the Balearics, but should take circa 9 months to recover the 3% retention in mainland Spain.

NickReve

OK! Let me ask you another question. You say 3% of my profit but what about the property tax of the whole sale's price? Any body knows how much this is? Thanks!

missile

It is 3% retention of the sale price, not the profit.

amideislas

Correct. 3% retention of the *sale price* is in anticipation that you, the seller will be liable for some degree of CGT (see above link).

After the sale, the sale price will be compared to the purchase price (with allowances for inflation), and if taxation on your gains (taxed at 19%), exceed 3% of the sale price, then you will be liable for the difference.

On the other hand, if you can prove that the tax on your gains are less than the 3% retention, or that you invested the proceeds in another property, you can claw back the 3% (or the difference from what you actually owe).

SteveDW

Would this mean that being resident outside the EU when you sell they wouldn't pursue you for CG tax?