Agency Commission Seller: – When you sell a property through an estate agent you will have to pay a commission fee. Estate agents usually charge around 5% commission in Spain. The seller can deduct the Agency commission fee from his capitals gains tax, Discus with Solicitor. As a seller, you might want to ask the services provided by the agency. Good estate agents should also have the legal know-how to make option contracts, apply for NIE numbers and various after sales services like changing the utility bills and community charges to the new owner for example. Sellers can advertise their property through several estate agents. Nevertheless however, some Estate Agents will try to offer the seller an exclusively contract, removing other agents, for a smaller commission fee, and thus reducing the properties exposure.

Sellers need to take that into account when advertising their property exclusively through one estate agent.

Capital gains tax for 2018 →    Seller…19%.. for the first 6.000 euros …21%… from 6.000 and 50.000 euros…23% .. from 50.000 onwards

As an example if the seller bought a house in 2003 for 200.000 euros and in 2018 he sells it for 350.000 euros, he will have to pay capital gains over 150.000 euros in this way:  (350.000 – 200.000 = 150.000). 19% for the first 6.000 (6.000 x 0.19) + (50.000 x 0.21) + (94.000 x 0.23)= 1.140 + 10.500 + 21.620= 33.260 euros ..There are exceptions when the seller does not have to pay capital gains tax and that is when the sellers of the property are older than 65 and have lived there officially for at least the last 3 years. All official invoices relating to the purchase of the property, such as refurbishing, notary expenses, lawyer expenses and estate agency fees can be deducted from the capital gains tax.

Income Tax Provision for non-residents – Retención → Seller : – If the seller is not a Spanish resident he has to pay 3% income tax provision or retención in Span which goes directly to the tax office to cover taxes resulting from the sale. However, the seller can claim for a refund if he believes that his tax liability is less than 3%.

Energy certificate → Seller: –  From June 1 2013, by Spanish law all property owners who want to sell or rent out their property need an energy certificate. These certificates must be issued by a qualified certifier, such as architects, surveyors or technical house engineers. The costs for such a certificate may vary on the size of the property and can be between 100 and 500 euros. The invoice for this certificate can also be deducted from the capital gains tax.

Plusvalía →              Seller: – The plusvalía is a tax over the increase of the value of the ground the property is on. This is paid to the local town hall. The plusvalía is calculated on the basis of 3 factors: The period of ownership, the location of the property and the cadastral ground value.
The plusvalía tax can easily be requested at the town hall where the property is located.
By law, the plusvalía tax should be paid by the seller and it can be a substantial sum of money.

Nevertheless, the plusvalía can be paid by the buyer if he has agreed. View on PDF an example of a Plusvalía.

Here is a basic example giving some rough estimates of the costs:- Mr. A (the seller) sold his apartment in Mallorca to Mr. B (the buyer). When Mr. A bought the apartment in 2003 he paid 200.000 euros. Now Mr. A has managed to sell the apartment in 2018 to Mr. B for 350.000 euros.

Costs for the seller (Mr. A)

Sold it in 2018	350.000
Bought it 2003	– 200.000
Profit before taxes	150.000
Capital gains	– 33.260
Agency fee 5%	– 17.500
Income Tax Provision 3%	– 10.500
Plusvalía tax	– 4.000
Energy certificate	– 300
Net profit	84.440

Costs for the buyers (Mr. B)

Purchase price	350.000
Property transfer tax 8%	28.000
Notary fee	800
Registry costs	600
Gestoría	400
Total Costs	379.800

You might also be interested to read more about.

“Spanish Property Tips”,                                             Which includes handy pointers on buying and selling properties in Spain.

List Your Property as an Owner Vendor.                   Selling a Spanish Property

Mallorca property guide,                                            All you need to know when buying a property in Mallorca