This guide explains each cost in turn, for sellers in Marbella and along the Costa del Sol, whether or not you live in Spain.
Working out what you keep
The amount you keep is the sale price minus selling costs, your outstanding mortgage and tax on the gain. Selling costs include the plusvalía. Capital gains tax is paid separately: a Spanish resident declares it in the income tax return for the year of the sale, filed the following spring, rather than paying it at completion.
The costs of selling
| Cost | Who pays | Notes |
|---|---|---|
| Agency commission | Seller, as agreed | Plus 21% IVA |
| Plusvalía municipal | Seller | Local tax on the increase in land value. See below |
| Notary | Seller pays for the deed itself | Article 1455 of the Civil Code: the seller pays for granting the deed, the buyer for the first copy, unless agreed otherwise |
| Mortgage cancellation | Seller | Notary and registry costs to cancel the charge, plus any early-repayment fee |
| Energy certificate | Seller | Legally required to sell |
| IBI for the year of sale | Seller is liable | Usually shared with the buyer at completion, by agreement, in proportion to the days each owns the property |
| Lawyer | Seller, if instructed | Optional for sellers, but advisable for a complex sale |
For a mortgage signed since June 2019, the early-repayment fee is capped by law (Ley 5/2019). Ask your bank for a certificado de deuda pendiente showing the outstanding balance at the expected completion date, including any repayment fee.
Capital gains tax
The gain is the sale price minus selling costs and the cost of acquiring the property: the purchase price, purchase taxes and fees, and documented improvements.
For a Spanish tax resident, the gain is taxed on the savings scale, per owner:
| Gain, per owner | Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,000 to €50,000 | 21% |
| €50,000 to €200,000 | 23% |
| €200,000 to €300,000 | 27% |
| Over €300,000 | 30% |
If you own the property jointly, each owner is taxed on their share of the gain, with the tax bands applied separately to each person.
Example for one owner: bought for €400,000 plus €40,000 in purchase taxes and fees, and sold for €650,000 with €30,000 in selling costs. The gain is €180,000. A Spanish resident pays €40,280 in tax before any exemption.
€180,000
The gain in this example
€40,280
Tax for a Spanish resident, before any exemption
€34,200
Tax for a non-resident, at a flat 19%
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The seller's guide as a PDF
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When the gain can be exempt
- You reinvest in a new main home. If the property you sell has been your habitual residence (as a general rule, for at least three years), the gain is exempt to the extent you reinvest the proceeds in a new habitual residence within two years. Reinvest part, and the exemption is proportional.
- You are 65 or over. The gain on selling your habitual residence is exempt.
Ask a gestor to check whether you qualify, including how long you lived there, the relevant dates and the amount treated as reinvested. Confirm this before agreeing a price.
If you are not resident in Spain
A non-resident pays a flat 19% on the gain, whether resident in the EU or elsewhere. One exception: if the house was your main home and you live in the EU or EEA, the reinvestment exemption above still applies, in full or in proportion to what you reinvest. UK residents no longer qualify. At completion, the buyer must still withhold 3% of the price and pay it to the tax office on your behalf (Modelo 211). You then file Modelo 210, paying any remaining tax or claiming a refund if too much was withheld.
In the same example, a non-resident owes €34,200. The buyer withholds €19,500 at completion, leaving €14,700 to pay with Modelo 210. The 3% is an advance tax payment, so it reduces the amount you receive on the day without adding to your total tax bill.
The plusvalía works differently too: when the seller is non-resident, the law makes the buyer liable for paying it (article 106.2 of the local finance law), so expect the buyer to hold that amount back from the price as well.
Plusvalía municipal
This local tax, paid by the seller, applies to the increase in land value during ownership. There are two ways to calculate it, and you can use whichever gives the lower amount:
- The objective method: the land's cadastral value, times a coefficient set by law for the number of years you owned it, times the town hall's rate, which the law caps at 30%.
- The real method: the actual increase in the land's value, measured from the purchase and sale deeds.
If the land did not increase in value, for example because you sold for less than you paid, no plusvalía is due, provided you declare this and support it with the deeds. In either case, you must declare the sale to the town hall within 30 working days.
Documents to prepare for sale
- The purchase deed and the purchase invoices: notary, registry, gestoría, and the transfer tax or IVA paid. They raise your acquisition cost and lower your gain.
- Every invoice for improvements, with your name and NIF.
- The latest IBI receipt, which shows the cadastral value of the land.
- A certificate from the community administrator confirming your fees are up to date, and recent meeting minutes.
- The energy certificate.
- A certificate of the outstanding mortgage from your bank.
How I help you prepare to sell
Before your property goes on the market, I calculate the selling costs, the plusvalía under both methods, capital gains tax with any exemptions you may qualify for, and what you would keep at different sale prices. If you plan to buy again, this also helps establish the minimum price you need. Your gestor confirms the figures, so you can negotiate with a clear budget in mind.