CHARGES TO PAY WHEN SELLING A PROPERTY

does anyone know what charges we will have to pay when we sell our property.

we know that we have to pay a solicitor(abogado), estae agent and notary but

are not sure what the rest of the charges will be.

also what is the usual percentage charge of an estate agent and are all the rest

of the charges based on the property price

Hi agents will  charge about 5% for selling plus iva, also the tax man will hold 3% back of your selling price and this takes about 12 months to get back. im selling a polaris property for apx 150k the agent want  nearly 10k. Good luck

Whether you are resident or not you have to pay tax on the “profit” when you sell a property in Spain, this is called Capital Gains Tax. The profit is generally calculated as the difference between the selling price and the purchase price. Charged at 18%. There are certain reductions in the taxes to be paid depending on certain criteria, for example properties acquired before December 31 1994 benefit from a reduction of 11.11% per year for each year the property was held.

If the seller of the property is non-resident then the buyer holds back 3% of the sales price in order to pay the taxes. This is normally handled by the notary or lawyer handling the purchase. The 3% is paid to the tax authorities and a copy of the form is given to the seller in order that they can complete their tax form and deduct this amount from their Capital Gains tax. If the amount withheld exceeds the tax due then the excess is refunded. If the withheld tax is not paid over to the tax authorities then the liability is attached to the property.

Hi - Jazll is right - not many people have to worry about Capital Gains Tax these days. 

However, there is a tax called Plus Valia which the seller pays.  It is a local tax and varies enormously from area to area, but it is based on the increase in the value of the land on which the property is built, multiplied by the number of years you have owned the property.  Your lawyer can calculate this for you, or you can go to the Suma office and they will give you an estimate, if you have a rough idea of the completion date of your sale. 

The buyer pays the Notary, not the seller, so your other costs are agent and lawyer.

Good luck with the sale!

thanks everyone for your replies.

just waiting now for place to sell.

Also make sure any contract says buyer pays notary. You should not pay the notary.

if not then the law applies which means seller pays for first copy.

sometimes this can be the risk of going it alone (ie no lawyer)

also if there is a mortgage then you would have to pay notary and property registry re cancellation of mortgage.

Make sure any retentions are reasonable (re plusvalia etc) otherwise you will be back on here asking what should you do regarding excessive retention and no one communicating with you!!

Shop around for the legal fee and makre sure you get it in writing what exactly it will be and what is included.

How much will your lawyer charge for submitting CGT return and any outstanding non-resident tax returns required to secure refund etc.

Make sure everything is fixed fee.......................