There could be multiple reasons why people decide to sell their property. For example, the price of the apartment raised over the years, and it’s the perfect time to collect the profit or they just want to buy another one as their family got bigger.
No matter what reason it is, the general rules are pretty standard when it comes to selling a house in Spain.
3 taxes when selling a property in Spain
El IRPF is a personal income tax, a direct tax levied on the income of individuals. In this case on the profit made with the sale of the property.
Plusvalía muicipal is a local tax charged by the city hall and is calculated on the market value of the property, and the number of years that have passed since the property has been bought. The objective is to tax the increase in the value of the land on which the property is built.
El IBI is a property tax charged by the town hall and it is paid annually by every owner.
Non residents should pay a Capital Gain Tax instead of IRPF
Capital Gains Tax is 19% for non-residents from EU/EEA countries or 24% for non residents from other countries.
According to Spanish law, if you’re a resident, you are applied a scale between 19% and 23% and can also get tax relief if you have lived in the property for at least three years before selling it.
Agency fees
Selling your property with an agency simply makes your life many times easier and stress free. In Barcelona, bigger agencies usually charge 5-6% + 21% VAT of the total amount, smaller ones 3-4% + 21% VAT.
Selling the property can become pretty complex when being unfamiliar with Spanish Tax Law, our agency recommends seeking legal advice and offers our services to appraise and sell your property in Catalonia.
Please don’t hesitate to contact us if you need any help.