Taxes to be paid when selling a house

Today, from Porfinca, your trusted real estate agency on the Costa Brava, we want you to know the 3 taxes to be paid when selling a house. This fiscal repercussion affects all owners who formalize the purchase and sale of any property. The taxes are local or state taxes concerning different areas and their amounts usually vary due to different factors, such as the place where the property is located or the final sales price.

1. The municipal capital gain

Also known as IIVTNU, this tax corresponds to the local administration in which the property is situated and refers to the increase in value of land of urban nature. Its price is set by the local council. It can be exempted if it is proven that during the years in which one has been the property owner no increase in value has occurred.

2. Personal income tax 

The sale of a property is considered a capital gain, that is why this tax, also known as IRPF, must be paid.

In this case, we are dealing with a state-wide tax of between 19% and 23%, depending on the price of the property. There are three cases in which it is exempted:

• When the owner is over 65 years old and is selling his or her principal residence.

• When the money obtained from the sale is invested in the purchase of a new property. The reinvested money is deductible; if there is a difference, that difference is subject to tax.

• When the owner is over 65 years old, has sold a secondary residence (not the primary residence) and has reinvested this revenue in the acquisition of a life annuity.

3. Real estate tax

Also known as IBI, this is an annual tax that is effective as of January 1st. Therefore, it corresponds to the person who is the owner at that time. In the event that the property is sold after this date, the new owner is obliged to pay the proportional part when buying the property.

Experts in tax advice

It is really important to be aware of all of these taxes, otherwise the owner could face surcharges or penalties from the Tax Agency. And the best way to do this is to trust professionals who are experts in tax advice.

At Porfinca, your trusted real estate agency on the Costa Brava, we accompany our clients from start to finish in the process of buying and selling and we take care of all the necessary formalities and procedures along the way.

If you are interested in selling a house in Begur, Calella, Pals, Tamariu, Platja d’Aro or any other corner of the Costa Brava, do not hesitate to contact our team and ensure a successful and seamless sale.