What Costs Arise When Selling a Property in Spain?
Anyone selling a property in Spain shouldn't focus only on the desired sale price. Depending on the property and your personal situation, various fees, taxes and other selling costs can arise.
Calculating these early helps you get a better sense of what net proceeds will actually remain after the sale.
We've summarised the most important potential costs for sellers on the Costa del Sol here for you.
Estate agent's commission
If you sell your property through an estate agent, the agreed commission becomes payable upon a successful sale. At Right Casa, the standard sales commission is 5% of the sale price plus the statutory Spanish VAT (IVA), unless otherwise agreed in the agency agreement. The commission is generally only payable upon a successful sale, in accordance with the terms agreed in the agency agreement. This includes the professional marketing of your property — among other things, through our website, national and international property portals, our network of agents, our client database and our social media channels.
Legal fees
We recommend that sellers appoint an independent Spanish lawyer to handle the legal side of the sale. The lawyer can, among other things:
- review the sale documentation
- review or draft contracts
- clarify any existing charges on the property
- explain your tax obligations
- communicate with the buyer's lawyer
- represent you under a power of attorney, if needed
- prepare the completion at the notary
Costs vary depending on the law firm, the sale price and the scope of services required. We therefore recommend obtaining a specific quote before instructing a lawyer. If you don't yet have a lawyer, we're happy to recommend independent lawyers we've had good experiences with.
Energy performance certificate
An energy performance certificate (Certificado de Eficiencia Energética) is generally required to sell a property, unless a statutory exemption applies. If your property doesn't yet have a valid certificate, one must be prepared and registered by a suitably qualified professional. Costs depend, among other things, on the type and size of the property and on the provider. We can help you arrange this if needed.
Cancelling an existing mortgage
If a mortgage is registered on the property in the land registry, this needs to be addressed as part of the sale. Important: even if a mortgage loan has already been fully repaid, the mortgage may still be registered in the land registry. In this case, a formal cancellation of the mortgage in the land registry may be required. This can involve costs for the bank, the notary, the land registry and, where applicable, a gestoría. The actual costs depend on the individual case. If a mortgage is still outstanding at the time of sale, the sale process usually clarifies how it will be paid off from the sale proceeds and subsequently cancelled.
Plusvalía Municipal
The sale of a property can give rise to the so-called Plusvalía Municipal. Its official name is Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU). This is a municipal tax on the increase in value of the land portion of an urban property during the period of ownership. The calculation depends, among other things, on the cadastral value of the land, the length of ownership and the regulations of the relevant municipality. Following legislative changes in recent years, different calculation methods now exist. In certain cases — particularly where no relevant increase in the land's value has occurred — the tax treatment may also differ. We therefore recommend having the specific Plusvalía calculated by a lawyer or tax advisor before the sale.
Capital gains tax
The sale of a property may also give rise to capital gains tax on the actual taxable profit made. Put simply, this looks at the difference between the tax-relevant acquisition value and the tax-relevant sale value. Certain verifiable purchase, sale and investment costs can be taken into account in the calculation, provided they meet the legal requirements. However, the actual tax owed depends heavily on the seller's personal situation — for example, whether they are tax resident in Spain and whether certain statutory exemptions or reliefs apply. The individual tax calculation should therefore always be carried out with a qualified tax advisor or lawyer.
Important for sellers who are not tax resident in Spain: 3% withholding
If the seller is not tax resident in Spain, the buyer is generally required to withhold 3% of the agreed purchase price and pay this amount to the Spanish tax authorities. This withholding is not automatically the final tax. After the sale, the seller's actual tax liability is calculated. If the final tax is lower than the amount already withheld, the seller may, subject to the relevant requirements, apply for a refund of the difference. If the actual tax is higher, the difference must be paid accordingly. For owners who are not resident in Spain in particular, it therefore makes sense to have the tax implications calculated before signing the sale contract.
Other possible selling costs
Depending on the property and individual circumstances, further costs may arise, for example for:
- obtaining or updating required documents
- technical or administrative certificates
- powers of attorney
- gestoría fees
- any necessary legalisations or registrations
- settling outstanding community fees or other liabilities
- any necessary technical or legal clarifications before the sale
Not every seller incurs the same costs. It's therefore worthwhile having an individual cost overview prepared at the start of the sales process.
What will I have left after the sale?
For many owners, this is ultimately the most important question. Depending on the individual case, the following items may need to be deducted from the sale price, for example:
We therefore recommend our sellers prepare an approximate net calculation together with their legal or tax advisor before the sale. This way, you'll know early on roughly what amount you can expect once the sale is complete.
Would you like to sell your property on the Costa del Sol?
Right Casa accompanies you from the initial property valuation, through professional marketing and viewings, to negotiations and a successful sale. If you wish, we can also recommend experienced independent lawyers and tax advisors who can review your personal tax and legal situation. Contact us for a free, no-obligation valuation of your property.
Note: This information is provided for general guidance only and does not constitute individual legal or tax advice. Taxes, allowances and legal regulations may change and depend on the seller's personal situation.