Selling a house on the Costa Blanca is an exciting process, but before you start planning what you’ll do with the money, there’s one mandatory question you need to ask yourself: How much will it really cost me to sell my property?
To avoid last-minute surprises at the notary’s office, it’s essential to know the regional, local, and national taxes that apply to you as the seller.
To help you work it out with complete peace of mind, we break down all the expenses and taxes when selling a property in the Valencian Community.
If you sell your house for a price higher than what you paid for it back when you bought it, you’ve made a capital gain, and the tax authorities will want their share.
This tax is national, so it applies the same in Calpe, Altea, or Madrid. It’s calculated by subtracting the Acquisition Value (what you paid for it at the time + justified renovations + the notary and management fees from then) from the Transfer Value (the current sale price minus the costs associated with the sale, such as the real estate agent’s fees).
The net gain is taxed progressively by brackets:
Capital Gain Bracket | Tax Rate |
Up to €6,000 | 19% |
Between €6,000 and €50,000 | 21% |
Between €50,000 and €200,000 | 23% |
Between €200,000 and €300,000 | 27% |
More than €300,000 | 28% |
There are three key exceptions in the law that allow you to save on this tax:
Over 65: If you sell your main residence and you’re over 65, the gain is 100% exempt from tax. You don’t have to pay anything, and you’re not required to reinvest.
Reinvestment exemption: If you sell your main residence and invest all the money obtained in buying another main residence within a maximum period of two years, you won’t have to pay IRPF.
Sale at a loss: If the real estate market has forced you to sell for less than what you paid for the house originally, there is no capital gain—so you don’t pay IRPF (and you may even be able to offset that loss against other financial gains).
This tax is paid directly to the Town Hall where the property is located (for example, the Calp Town Hall or the Altea Town Hall). It taxes the increase in the value of the land (not the construction) during the years you have owned the property.
The regulations allow you to choose between two calculation methods, and you have the right to select the one that makes you pay less:
Real Method: Calculates the actual difference between the purchase price and the sale price of the land. Ideal if the property increased in value only very slightly.
Objective Method: Multiplies the cadastral value of the land by coefficients set by the Government, which vary depending on how many years you owned the house.
Watch out! If you prove with the deeds that you sold your house at a loss compared to what you paid for it, you are exempt from paying the municipal tax on land value. However, you still have the obligation to file the return with the town hall.
In addition to the pure taxes, as a seller you must cover a series of technical and legal costs so that the sale is 100% lawful:
Energy Efficiency Certificate (CEE): It’s mandatory by law in order to advertise and sell any home in Spain. Its cost usually ranges from €80 to €150, depending on the size of the property.
Habitability Certificate / Second Occupancy License: In the Valencian Community, this is essential so that the new buyer can put the water and electricity supplies in their name.
Mortgage Cancellation Costs: If your house still has a mortgage pending, you must cancel it financially and in the land registry before signing the sale. This means paying bank fees for early cancellation (if applicable), as well as the notary and registry fees to remove the property from charges.
Property Tax (IBI): By law, the party responsible for paying the IBI for the whole year is whoever is listed as the owner as of 1 January. However, the Supreme Court allows the amount to be split proportionally between the buyer and the seller according to the number of days each one enjoys the property.
If you’re a non-resident owner in Spain (very common in areas such as Calpe or Moraira) and you decide to sell your property, the buyer will, by law, withhold a 3% of the sale price at the time of signing in order to pay it directly to the Tax Agency in your name. This works as an advance payment of your non-resident income tax.
Calculating these amounts accurately can make the difference between a profitable sale and one full of headaches.
Do you want to sell your property?
Click here: https://www.marinahabitat.com/vender/
