Your Guide to Selling Property in Spain: Free Property Valuation, Necessary Documents, and Costs for Sellers
List of Required Documents and Costs for Sellers
Required Documents List
If you’re planning to sell your property in Spain, it’s essential to gather the necessary documents to ensure a smooth and efficient process. Below is a list of the documents you’ll need:
Since many processes in Spain can take time, it’s important to have all the necessary documents ready before listing your property for sale. As the real estate market is moving quickly these days, we recommend preparing everything in advance to ensure a hassle-free selling experience.
At Javea Casas, we can recommend trusted architects and lawyers, and assist you in obtaining all the required documents for a smooth and efficient property sale.
Costs for Sellers: Taxes and Fees for Property Sales in Spain
Selling a property in Spain involves various taxes and fees that sellers need to consider. Here’s a clear and simplified breakdown of the key taxes and responsibilities you should be aware of, with a particular focus on the Valencian Community and, more specifically, Javea.
Capital Gains Tax
Capital gains tax applies to the profit made from selling a property. It’s calculated as the difference between the sale price and the original purchase price, adjusted for inflation.
For residents, capital gains tax is applied on a sliding scale:
However, if the property has been your primary residence for at least three years before the sale, you may be eligible for tax relief. Additionally, sellers over the age of 65 who have been residents in Spain for at least three years are exempt from paying capital gains tax.
Obligatory Retention for Non-Residents
If the seller is a non-resident in Spain, the buyer is required to withhold 3% of the purchase price to ensure payment of any potential unpaid taxes, such as non-resident income tax. After the sale, the seller’s lawyer can apply for a refund of any excess amount, provided the sale was without profit and all taxes are settled.
Land Appreciation Tax (Plusvalía)
This municipal tax is based on the increase in the value of the land from the time it was acquired to the time it is sold. It is calculated based on the cadastral value of the land, not the market value or sale price.
The seller is responsible for paying the Plusvalía tax, which depends on the number of years of ownership:
The maximum rate generally does not exceed 30%, depending on the local authorities.
Mortgage Cancellation Fees
If the property has an outstanding mortgage and is paid off during the sale, there will be cancellation fees. These fees generally range between 0.5% and 1% of the remaining mortgage balance.
Estate Agency Commission
In Javea, estate agency commissions generally range from 3% to 6%, with the most common rate being 5% of the sale price, plus 21% IVA (Value Added Tax).
Other Costs and Fees
Before completing the sale, ensure that all debts related to the property are cleared, including:
As a seller, understanding and budgeting for these taxes and fees will help ensure a smooth and successful sale process. At Javea Casas, we are here to guide you through every step of the selling process. Contact us today for more information and expert assistance in selling your property in Spain.