Basically, you should calculate for paying two fees and one or possibly two taxes. You will also have to cancel any debts, charges or liens which may be recorded against the title at the Property Registry.

FEES

1. Estate Agent’s Fee: Estate agents usually ask for between 5% and 10% of the purchase price as their commission.

2. Legal Fees:These fees usually amount to between 1% and 1.5% of the purchase price.

TAXES

1. Capital Gains Tax (Impuesto sobre las Rentas Derivadas de Transmisiones de Bienes Inmuebles): Capital Gains Tax is payable on the profits arising from any property sale in Spain whether you are resident or non-resident. However, different rates and payment methods are applied to residents and non-residents. Residents can also benefit from a series of deductions, which reduce or even exempt them from liability, that are not available to the non-resident seller.

Both residents and non-residents are liable to pay Capital Gains Tax on their net profits. To calculate the net profits from a sale you take the original price you paid for the property, which appears on the title deed. Now, add to this all the expenses you incurred in the purchase of the property. Next, apply the official Inflation Correction Factor (Coeficiente de Actualización) to this sum. The resulting amount is now deducted from the price you have received for the property, along with any expenses you have incurred during the sales process, to give you a figure for your net profit. Non-residents pay 18% Capital Gains Tax on this net profit, while residents pay a lower rate of 20% as part of their Annual Income Tax declaration.

If you are a non-resident, remember that your buyer will have to pay 3% of the purchase price directly to the Inland Revenue to ensure that any potential tax liability is met. In the event that your actual liability is lower than this 3% figure you can claim a refund of the excess once the sale has been completed. To do

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