What costs are involved in selling a property in Spain?

What are the costs when selling a house in Spain?

Generally speaking in Spain on average the buyer will end up paying around 12%-14% on fees and taxes and the seller around 23% on the profit made from selling the property.

Plusvalía (Seller)

Purchase price 350.000
Property transfer tax 8% 28.000
Notary fee 800
Registry costs 600
Gestoría 400

How much does it cost to transfer property in Spain?

The Spanish tax authorities may claim a transfer tax called Actos Juridicos Documentados (AJD) which varies regionally between 0.75% to 1.75% of the official property value.

What are selling expenses on sale of property?

Selling expenses can include transfer taxes, stamp taxes, sales commissions paid to a real estate agent, any fees for a service that helped you sell your home without a broker, advertising fees, legal fees, and any mortgage points or other loan charges you paid that would normally have been the buyer’s responsibility.

What happens when you sell a property in Spain?

If you are selling a property in Spain and you are not resident in Spain for tax purposes, then 3% of the selling price will be retained upon the sale on account of capital gains tax. In the event that no tax is payable you may be able to claim a refund.

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How much are notary fees in Spain?

The notary

In the case of granting the public deed of sale, prices are usually between 600 and 875 euros, but greatly depend on the price of the property. For example, for a 100,000 euro flat you would pay approximately 850 euros, while for a 250,000 euro flat you would have to pay around 1,000 euros.

How much is Capital Gains Tax in Spain?

Capital gains obtained in Spain by non-residents without a PE are taxed at a rate of 19% when they are generated from transfers of assets otherwise they are taxed at the general NRIT rate of 24% (for residents of other EU member states or EEA countries with which there is an effective exchange of tax information, the …

Who pays property transfer tax in Spain?

The transferee must pay the tax at a rate up to 10 % of the purchasing price, depending on the region where the property is located. In case of purchasing a movable or personal property, rates also depend on the region where the purchase takes place.

What are the pitfalls of buying property in Spain?

Some of the common pitfalls of buying a property in Spain include deposit, purchase tax, issues with off-plan properties and properties being built illegally. During your research into buying a property in Spain you will have come across many stories of purchases in Spain gone wrong.

Who pays notary fees in Spain?

If nothing is agreed in the purchase contract, or if it is said that the fees will be paid according to the law, then the expenses should be paid in accordance with article 1455 Cc and the majority of the notary expenses will be the responsibility of the seller.

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What is considered a selling expense?

Selling expenses are the costs associated with distributing, marketing and selling a product or service. They are one of three kinds of expense that make up a company’s operating expenses.

How is cost basis calculated?

You can calculate your cost basis per share in two ways: Take the original investment amount ($10,000) and divide it by the new number of shares you hold (2,000 shares) to arrive at the new per share cost basis ($10,000/2,000=$5.00).

What is considered expense of sale?

The S stands for selling expenses, which include the cost to promote, sell and deliver goods and services. Selling expenses are things like sales collateral, travel to customers or potential customers, advertising costs and the salaries and commissions of sales employees.

How can I avoid Capital Gains Tax in Spain?

4 ways to get out of paying capital gains in Spain

  1. Update the value of the property according to the CPI. …
  2. Include the costs of making the land buildable. …
  3. Include notary fees, registration fees and taxes. …
  4. One more trick you can use if there is still a profit on the sale of the house.