Costs Of Selling A Property In Spain
Selling Costs of Properties in Murcia
Selling a property in Murcia, Spain, involves various costs that can differ based on the seller's residency status. Whether you're a resident, a European citizen, or a non-European vendor, understanding these costs is crucial for a smooth transaction. Let's break down the key expenses you should consider.
For Residents
Capital Gains Tax (CGT)
Residents in Spain are subject to capital gains tax on the profit made from the sale of their property. The tax rates are progressive, ranging from 19% to 23% depending on the amount of profit.
Municipal Capital Gains Tax (Plusvalía)
This tax is based on the increase in the value of the land since the property was purchased. The amount varies depending on the municipality and the duration of ownership.
Notary and Registry Fees
Notary fees are paid by the purchaser.
Real Estate Agent Commission
If you use a real estate agent, their commission is usually around 3% to 4% of the sale price.
For European Citizens
Capital Gains Tax (CGT)
European citizens are also subject to capital gains tax, with rates ranging from 19% to 23%. However, there are certain exemptions and deductions available, such as reinvesting the proceeds into another primary residence within the EU.
Municipal Capital Gains Tax (Plusvalía)
Similar to residents, European citizens must pay this tax based on the increase in land value.
Notary and Registry Fees
Notary fees are paid by the purchaser.
Real Estate Agent Commission
The commission for real estate agents remains around 3% to 4% of the sale price.
For Non-Europeans
Capital Gains Tax (CGT)
Non-European vendors are subject to a flat rate of 24% on the profit made from the sale of their property.
Municipal Capital Gains Tax (Plusvalía)
This tax applies to non-European vendors as well, based on the increase in land value.
Notary and Registry Fees
Notary fees are paid by the purchaser.
Real Estate Agent Commission
The commission for real estate agents is typically around 3% to 4% of the sale price.
Claiming Back the Retention Tax
Non-resident sellers are subject to a 3% retention tax on the sale price, which is withheld by the buyer and paid directly to the Spanish tax authorities.
To claim back the retention tax, follow these steps:
Obtain the Retention Certificate:
The buyer should provide you with a certificate of the retention tax payment.
File a Tax Return:
Submit a tax return (Form 210) to the Spanish tax authorities, declaring the sale and the retention tax paid.
Provide Documentation:
Include all necessary documentation, such as the retention certificate, proof of purchase, and proof of sale.
Await Refund:
If the retention tax exceeds your actual capital gains tax liability, you will receive a refund for the difference. The process can take several months, so patience is key.
Selling a property in Murcia involves various costs that can differ based on your residency status. By understanding these expenses and the process to claim back the retention tax, you can better plan your budget and ensure a smooth transaction. Whether you're a resident, a European citizen, or a non-European vendor, being aware of these costs will help you navigate the selling process with confidence.