Will I pay any tax when I sell my property in Spain?

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I HAVE received a question about this interesting and important issue. Thanks Lisa for your question and the answer is yes.

When you are non-resident for tax purposes in Spain you have to pay 3 per cent of the asking price of your house. This payment goes to the Tax Authorities (Hacienda) but importantly, you can recover this significant amount if you are losing money on the sale. 

Then if you paid more than you sold the property for, the Spanish government will refund your money within six months although you have had to pay, every year, the 210 Model Tax. This is the non-resident tax the owner should pay to Hacienda and this amount is calculated based on the value of the house.

The ‘Plusvalia Municipal’ is a local tax and is paid to the town hall and depends on:

– The cadastral value of the plot of land at the date of the transfer of ownership.

– The amount of years that you have owned the property.

– A multiplier and a tax base, which can be found in the corresponding municipal by-laws.

In addition, if in your case, you purchased the property with a mortgage then you should pay the mortgage paying-off legal expenses for the Registry’s cancellation of the mortgage. Normally this amount will be in the region of €1,000.

My column will be published every Thursday to advise you on the real estate market in Spain and if you have any questions please send them to me at my email address [email protected] and I will reply to you directly.

Questions and answers will also be published in future columns and more information about my service can be seen at www.adrianbarbudo.com.

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