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 SALE. FREQUENTLY ASKED QUESTIONS
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Payments & Expenses |
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| What can I expect the stage payments to be? |
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New builds |
Resales |
€3,000 on signing the contract
Balance on completion |
€3,000 on signing the contract
Balance on completion |
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| What expenses are incurred when selling a property? |
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PURCHASE |
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SALE |
| Price of the property: |
200,000€ |
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Price of the property: |
200,000€ |
| Tax @ 7%: |
14,000€ |
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Tax @ 3%: |
-6,000€ |
| Stamp Duty Tax @ 1%: |
2,000€ |
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Plusvalía Tax: |
-500€ |
| Notary's Fee: |
1,000€ |
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Notary's Fee: |
0€ |
| Land Registry: |
300€ |
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Land Registry: |
0€ |
| Utilities: |
300€ |
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Utilities: |
0€ |
| Solicitor's Fees @ 1%: |
2,000€ |
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Solicitor's Fees @ 1%: |
-695€ |
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| Total Price |
219,600€ |
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Total Price |
192,805€ |
When you sell the property the buyer is liable to retain 3% of the purchase price- It is just a retemption the tax will be calculated later.
Then we will need to apply for the 6000 Euros back to the tax office. Therefore your final costs will be the taxes (plusvalía and the solicitors fee) although the purchasers will have to retain 3%.
In case there is a profit you will need to pay 19%
Example:
PURCHASE |
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SALE |
| Price of the property: |
100,000€ |
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Price of the property: |
200,000€ |
| Tax @ 7%: |
7,000€ |
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Tax @ 3%: |
-6,000€ |
| Stamp Duty Tax @ 1%: |
2,000€ |
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Plusvalía Tax: |
-500€ |
| Notary's Fee: |
1,000€ |
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Notary's Fee: |
0€ |
| Land Registry: |
300€ |
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Land Registry: |
0€ |
| Utilities: |
300€ |
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Utilities: |
0€ |
| Solicitor's Fees @ 1%: |
2,000€ |
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Solicitor's Fees @ 1%: |
-695€ |
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| Total Price |
111,600€ |
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Total Price |
192,805€ |
In this case instead of getting back from the tax service the 3% retained, you would have to pay 19% on the profit (diference between the purchase price and the selling price 200.000-111.600=88.400 x 19%=16.796 ) |
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| What are the capital gains taxes when selling the property? |
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Non Residents pay a maximum of 19%. Their capital gains tax is calculated as part of their Spanish income tax.
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