costs involved in selling property in spain?

Hi all,

What is Value Increment Tax - is this the 3% retention tax which non residents can claim back?

Plus Valia - anyone an idea of approximately how much this is - I have 2 bed apartment in Orihuela Costa.

Real Estate Tax 2012 - is this the non- resident tax.

Would be grateful for an information.

TIA

 

Angela

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Income tax and Plusvalia are calculated taking into account the price you buy it for and the price you are selling it for now.

Pluavlia amount is calculated by the Town hall.

Income tax is of 18% of profit

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Hi mariadecastro

Thank you for that reply.  Just also the purchasers want included on the contract the following:- That if there are any hidden defects that you have to cover the repairs. This is what the law says but they want it in the contract.

This seems to be a ridculous law - what if something should crop up and could cost thousands does this mean that I have to cover this.

 

Angela

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Plus valia is calculated by your town hall, and is based on the increase in the value of the land the property is built on - valor catastral. You (or your representative / estate agent) can find out quickly and easily by going to your town hall and askng how muc

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Plus valia is calculated by your town hall, and is based on the increase in the value of the land the property is built on - valor catastral. You (or your representative / estate agent) can find out quickly and easily by going to your town hall and askng how much it will be, but as an indication, I recently enquired about my 2 bed Costa del Sol apt, purchased in 2003, and the bill would be about €1,000 now. The 3% retention for non-residents is in lieu of any capital gains tax due - incremento patrimonio. You can only apply to get it back if there is no capital gain i.e difference between the purchase & sale prices declared on your deeds. If you have a gain, I believe the current rate of tax is 19% on the first €6,000 and 21% thereafter, but you will get as many different answers on this as people you ask. "Real estate tax 2012" I imagine refers to the rates (IBI, or sometimes referred to as Suma) which you are liable for, even if the bill hasn't yet been issued by the town hall. The thing about defects sounds a bit daft really. If it is the law, then surely there's no need to include it in any contract? Unless you are aware of a hidden defect that you don't want to admit to though, I wouldn't worry about it. It's hardly going to be enforceable anyway if something does arise, especially if you are out of the country. Sorry about the double post, I'm struggling to type this on a tablet and my thumbs keep getting in the way!

This message was last edited by Roberto on 23/03/2012.

This message was last edited by Roberto on 23/03/2012.

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 If (just for instance!!) someone was selling & had not paid the la renta for (a while!!!) would this be withheld in the 3%?

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Strictly speaking, the 3% retention is only in lieu of any capital gain resulting from the sale, but since it all goes to the same department (Hacienda) I guess if you haven't (ever??!!) paid la renta on your property, once they've got some of your dosh, even if you haven't made a capital gain (or at least not one that would result in a tax bill equivalent to 3% of the sale price) then you might find it a tad difficult claiming any of that retention back! But I really have no idea how they work - I'm quite sure that if you (for instance!!) hadn't paid la renta, you would not be alone, so maybe a non-resident who has actually gone through the process can comment?

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Hi Roberto,

 

Thanks for the reply.  I'm up to date with the La renta apart from last year which my solicitor will pay and deduct from the sale.

 

angela59

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Hi Angela - fortunately Orihuela Costa has a very low rate for Plus Valia, so this is unlikely to run into the thousands - unlike neighbouring Torrevieja where they have realised they can get lots of cash out of sellers. 

As mentioned below, this can be calculated easily or you can go to the Suma office and ask them to do a calculation for you, based on the date of completion.

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Thanks Claire,

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 Hi Maria, could you advise.  I sold my apartment in August 2010, also purchased a larger apartment in the same building.  I did not make any profit on the sale.  The buyers retained the 5%.  I was informed by my solicitor that I could reclaim this back, so long as my non resident taxes were all up to date, which they were.  I was informed in December 2011 by my current solicitor that the tax office said they could not find my returns.  I asked my previous solicitor who completed my returns for copies which they provided.  Since December 2011 I have been trying to contact my solicitor for an update as the refund is still outstanding.  They will not reply to me. I know they are still in business.  Should I instruct a new solicitor/accountant to take this up and move forward to claim the refund on my behalf?

 

Many thanks

 

 

 

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