PURCHASE AND SALE OF HOUSE
When you have decided to buy a property on the Costa Blanca or in another part of Spain, keep in mind that you must calculate extra expenses above the agreed sales price. For the exact amounts it is best to contact a real estate agent, although here we explain the basic concepts:
For used houses
Between 10 and 15% of the purchase price in transfer taxes, notary fees and register deed, property registration, etc. The law requires that in the sale of a property the seller is obliged to pay the fee of a real estate agent.
For new houses
Here you can also calculate between 10 and 15% of the purchase price but in this case, the largest part of the expenses consists of the 10% VAT. As a buyer of the property directly from the developer/builder, it is quite possible that there is no real estate agent involved, and that it is not necessary to pay a commission.
When you have decided to sell your property you can advertise the sale by private or use the services of a real estate agent.
If you choose to use their services, you should bear in mind that normally a 5% commission on the selling price will be charged. In addition, you always have to pay taxes on the profit to the Spanish state. That is, the difference between the amount of the previous value and the new, with the following exceptions:
- Residents over 65 who have lived on the property for the past three years do not pay income taxes
- If you are a resident and invest a new property, you will not be taxed on the gain, if the new property will be your primary residence
- The tax rate is 18% of the profit.
It is possible to deduct the regulation of the index and the expenses that have been associated with the house, but this must be documented. If you are a non-resident seller, 3% of the sale price (amount in title deed) will be deducted as an advance tax. If you paid too much, you can request a refund. If you have paid too little, the difference will rarely be required later.
If you are a resident, earnings, taxes, etc. will appear on the tax return that will be sent every year.
Collection of garbage
The waste collection fees depend on the Town Hall where the property is located and it is paid every year. It may vary, but for an apartment, the waste collection fee is approximately between € 180 and € 300 per year.
Generally, these are expenses to maintain the common spaces of a building, such as pool maintenance, an elevator(s), gardens etc and each owner in the building pays an amount calculated on the percentage of surface that occupies his property within the total of the building.
A budget is presented for the expenses of the community at the annual general meeting of the owners, and they or their authorized representatives must approve the budget by a majority vote of those present at the meeting.
Expenses can vary substantially according to the services provided, and usually include staff salaries, maintenance of elevators, repairs of common elements, the collection of waste, water and electricity for gardens and community areas, insurance, security and administration fees. A 2-bedroom apartment in a building or community with a doorman, a pool and a small garden, could cost between € 120 and € 300 monthly.
Real estate and finance companies
Are you looking for someone who can help you with the purchase, sale, and financing of real estate in Spain, then take a look at these companies.
Disclaimer: The information on this page only serves as general information and we are not responsible for incorrect information, changes in regulations, etc.