When an owner asks us how much they will keep from the sale, the answer is almost never the price minus the agency fee. There are taxes the seller pays, some are settled at the notary, and if you are not resident in Spain part of the price is withheld. This is the summary we give at the first meeting; the exact figures for your case should come from a tax adviser.
1. The municipal plusvalía
The plusvalía municipal taxes the rise in the value of the land since you bought. It is levied by the town hall, paid by the seller and calculated from the cadastral value of the land and the years of ownership — or from the actual gain if that is lower. If you can show with the deeds that there was no gain, it is not due. It does not apply to fincas on rustic land, because it only taxes urban land.
2. The capital gain
The gain is the difference between the sale value and the purchase value. The purchase value includes the costs and taxes you paid at the time (ITP, notary, registry) and documented improvements; the sale value is reduced by the selling costs, such as the agency fee or the plusvalía. That is why it pays to keep invoices for major renovations.
- If you are tax-resident in Spain, the gain is taxed in the savings band of IRPF, at 19 % to 30 % in brackets, in the following year's tax return.
- If you are not resident in Spain, it is taxed under IRNR at 19 %, with its own return (form 210). How your home country treats the gain is a question for your adviser there.
- There are exemptions for a main home, for example when reinvesting in a new main home or for over-65s. Check with your adviser whether they apply to you.
3. The 3 % retention for non-residents
If the seller is not tax-resident in Spain, the buyer must withhold 3 % of the price at completion and pay it to the tax office (form 211). It is not an extra tax but a payment on account: the seller then files the capital-gains return and, if the 3 % exceeds the tax actually due, can claim back the difference. Factor it in when planning what you will do with the sale proceeds.
The useful question is not “how much should I ask?” but “how much will I keep?”. With the purchase deed on the table, it takes an afternoon to work out.
4. Other seller costs
- Cancelling any outstanding mortgage and registering the cancellation.
- Energy certificate, required to advertise the property.
- A valid habitation certificate (cédula de habitabilidad), required on sale in the Balearics.
- The year's IBI property tax and a community-of-owners certificate, if applicable.
- Agency fees and, if you instruct one, your lawyer.
Before setting a price, at RE/MAX DRAC we prepare an estimate of the owner's net proceeds alongside the valuation. If you are thinking of selling in Santanyí or nearby, we are happy to do it with you, with no obligation.
