House for sale.
July 6, 2016

House for sale.

Although it is always highlighted about the costs when buying a property, selling a home also involves a number of expenses and taxes that the owner must take into account when setting the price. Unfortunately, neither the buyer, nor the seller can escape the costs involved.

The fees involved for the seller would be the Plusvalia (which is a tax on the property, depending on how long the property was owned for and at what price the property was originally bought for and then sold for), a cancellation fee of mortgage, if any, and of course the notary fees. At this point it should be noted that, if the property is sold and another house is purchased within two years, you will not be liable for the capital gains tax.

Finance capital gain

When selling a home, which is not ordinarily resident, to earn high income is fine, but, nobody is bitter sweet. The sale of a property must pay taxes on Income Tax of Individuals (income tax) if residing in Spain. Otherwise, it will be subject to the tax on non-resident income.

Any gain, should be reported as capital gains. This is calculated on the difference between the value at which the house was originally bought for and the value at which it was sold.

Until 2014, the way the income tax and capital gain tax were calculated was very different. The aim was to prevent the payment being too high for the capital gain. But sadly this has all changed with the last tax changes and now instead of taking into account general inflation over the years of owning a property, this is no longer taken into consideration and has led to increased tax payments for the seller from 2015.

Obviously if sold for less than what was the original purchase price, no capital loss, which can be offset by gains in the next four years.

What happens if they have residence?

The law exempts the taxpayer who sells his principal residence and allocates the price obtained for the purchase of another home (habitual residence) within a period not exceeding two years. Of course, this must be declared and qualifying as an exemption for reinvestment.

Notary and Registration

If there is a mortgage on the house when the house is sold, then a cancellation fee with be payable by the seller.. An expense of notary and registration to be taken into account.

Other expenses. - The property is sold free of encumbrances, hence, the seller must make sure all payments of community fees, suma, IBI, and any other rates payable up until the purchase date are paid in full. Moreover, if the sale was signed on January 2, the IBI, for example, would be the responsibility of the seller because it is the owner of the house earlier this year, hence it should be clarified and that usually is agreed who pays. The seller must also submit the certificate of energy, mandatory efficiency since mid-2013.


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