SALES EXPENSES

EXPENSES FOR THE SELLER WHO IS A TAX RESIDENT IN SPAIN:

MUNICIPAL CAPITAL GAIN: (Tax on the Increase in the Value of Urban Land):

It is a municipal tax calculated by the property registry office. It depends on the size of the apartment and the year of construction of the complex. It also depends on the current value of the land on which the property is built and how many years the sellers have owned the property.

CAPITAL GAIN DUE TO INCOME TAX:   

A tax of around 20% on the difference between the sale price and the purchase price. Some revaluation coefficients of the purchase price are considered.

IBI (Property Tax):

It is an annual tax. It is usually shared between the buyer and the seller in proportional parts according to the month in which the sales deed is signed.

EXPENSES FOR THE SELLER WHO IS NOT A TAX RESIDENT IN SPAIN:

MUNICIPAL CAPITAL GAIN (Tax on the Increase in the Value of Urban Land):

In the case of a seller who is not a tax resident in Spain, the MUNICIPAL CAPITAL GAIN is deducted from the sale price. It is subsequently paid by the buyer.

Capital Gain due to Income Tax

To ensure tax collection, the law provides that the buyer withholds 3% of the sale price and makes the payment of this amount. This 3% is deducted at the time of the issuance of the checks that the buyer gives to the seller at the notary at the moment the sales deed is signed.

IBI (Property Tax): 

The cost of the IBI for the year in which the property is sold is usually shared between the buyer and the seller in proportional parts. This is based on the month in which the sales deed is signed.