With this article, we want to shed light on the various expenses associated with selling a home in Spain in 2024 and what documents and certificates are required. Prices are described with + IVA which is equivalent to VAT. There is 21% VAT on services in Spain.
What is the cost of a broker in Spain
Brokerage fees are normally 5% + IVA of the sales price and are only paid upon completion of the sale. The broker is then expected to advertise widely in several countries and cover all expenses for advertising, marketing materials and all expenses for viewings. Read more about what’s included in a home sale.
Legal fees when selling a home in Spain
A good lawyer will ensure that you do not pay more than necessary and will in many cases save their own costs many times over. The normal fee for a lawyer when selling a property is €1500 + IVA. The estate agent can assist with obtaining the necessary documents for the sale of the property, but registration, payment of tax, settlement, etc. should preferably be handled by a lawyer. We take a closer look at the various items below.
Tax for non-residents of 3% of the sales price
Non-resident means that the person is not resident in Spain for tax purposes and is therefore liable to pay tax in another country. In Spain, the law states that if the seller is non-resident, the buyer is required to withhold 3% of the sales price and pay this as a deposit pending the calculation of capital gains tax. If the capital gains tax is lower than 3% of the sales price, the seller can apply for a refund. See example.
Capital gains tax on the sale of property
Capital gains tax on the sale of property in Spain is 19% of the gain on the sale.
The formula for calculating capital gains tax is:
Sales price minus expenses, minus (purchase price including costs and upgrades)
Example: Bought new build for 250,000€ incl.
costs and upgrades.
Sold for €300,000
Purchase price of property incl.
costs and upgrades: 250.000,00 €
Sale price property: 300.000,00 €
Expenses = €21,565
- Broker 18.150,00 €
- Lawyer 1.815,00 €
- Plusvalia € 1,000.00
- Certificates 600,00 €
Remaining = 278.435,00 €
Profit = 28.435 €
Tax for non-residents, 3% of sales price = 9.000,00 €
Tax 19% = 5.402,65 €
Application for refund.
3% minus paid tax = 3.597,35 €
Net gain on sale = 23.032,35 €
Plusvalía: Typically 500-1000 euros, but can be much higher if it’s an expensive property, you’ve owned it for a long time and it’s located in a municipality with high taxes.
How is the amount of tax you pay determined?
How much you should pay depends on 3 conditions:
- The tax value of the plot at the time of sale. If you have an apartment or terraced house, your share of the plot of the entire housing cooperative is used as a basis.
- How many years you have been the owner of the home
- the municipality where the home is located
There are different methods of calculation and a lawyer will be able to save you large sums if the correct method is used. There is also a supreme court ruling from February 28, 2024 that states that in many cases you can request a refund of this tax, eg. for example, if you can prove that you have not made any profit on the sale.
Energy certificate
Energy certificates are required by law and cost approx. 200€ + IVA . Energisertifikatet utstedes av arkitekt og må ikke være eldre enn 10 år når boligen selges. Det er også kommet nytt krav fra EU om at innen 2030 må boligen tilfredsstille energiklasse E eller høyere, og innen 2033 må boligen ha energiklasse D eller høyere.
Certificate of residence
A certificate of occupancy is not required by law, but it is common for the seller to pay for this. Residency certificate is issued by an architect and costs ca. 250€ + IVA . Praksisen avhenger av kommunen boligen ligger i. Noen godkjenner for 5 år, andre for 10 år. Noen vannleverandører krever også dette sertifikatet for å tegne kontrakt og da må det stå i navnet til kjøper. En lokal arkitekt kjenner som regel den ulike praksisen i kommunene.
Certificate from the condominium
A condominium certificate is required by law and costs €50. If your home is part of a condominium, you must provide proof that you have no outstanding debts. ATTENTION: If you have outstanding debts to the condominium and the buyer finances with a bank, the bank will not complete the purchase until the outstanding debt has been paid. If the buyer finances with their own funds, it is also a common solution that the amount owed is retained by a lawyer in connection with the settlement and paid to the condominium upon change of ownership.
