Taxes and fees for sellers...
When you're selling your property, you have to pay taxes and fees and fill all the legal paperwork.
What are those, to whom are they paid, what amount and how are they calculated?
This are the information that we like to give you.
Because we know that the selling of any house is a very difficult process that involves a lot of unknowns and a lot of stress which drives people to make many mistakes and because we know that the seller or buyer is not always a real estate agent, we have the pleasure to offer you this free guide to help you sell your property.
We also know that selling a house is a very important event in the life of any people and not doing it right can have terrible consequences that can alter the life plans we’ve made.
For that matter, you can find below a list of legal documents needed at notary when you close, hoping with our help, the Perfect Deal.
A. Mandatory documents
o Photocopy of D.N.I. of all the owners (front and back);
o Photocopy of D.N.I. of administrators in case of a company;
o Photocopy of separation / divorce judgment (if applicable);
o Photocopy of heirs declaration (if applicable);
o Agreements (if applicable);
o Photocopy of updated basic simple note property record – Spanish: nota simple básica (no more than 3 months old);
o Photocopy of last receipt of the urban contribution – Spanish: contribución urbana (I.B.I.);
o Photocopy of last receipt from the community;
o Photocopy of last receipt of garbage fee;
o Certification of energy efficiency (all 3 sections) - except as provided by law.
B. Complementary documents
o Photocopy Deed / Title of purchase;
o Photocopy of receipts (water, electricity);
o Photocopy of plans;
o Photocopy of quality memory;
o License of first occupation – Spanish: licencia de primera ocupación (it is possible that the real surface is different from the writing surface, problem that can be regulated);
o Photocopy of writing / title of sale;
o Short Informative Document – Spanish: documento informativo abreviado (DIA).
On top of those documents and other legal matters regarding residency, NIE and bank account, there are taxes and fees to be paid.
C. Taxes and fees
The price of the property that is published represents the public sale price – Spanish: precio público de venta (PVP). At this price, the seller has to pay the following taxes and expenses from where the net price will result.
o Personal Income Tax – Spanish:impuesto sobre la renta de las personas físicas
o Municipal Goodwill (Tax on the Increase in the Value of Urban Land) – Spanish: Plusvalía Municipal - (IIVTU) - from 2000 euros. The town councils are demanding the payment of the municipal capital gain, whether there are any capital gains or if there are losses in the sale of the home. It is paid to the town hall during the 30 working days after the signing of the sale. If the property is own less than a year, there will be no payment of this tax;
o Certification of energy efficiency - from 80 euros;
o Mortgage cancellation (if applicable);
o Real estate assessor fee - 5 % for exclusive representation, amount which will be paid only when the property is sold. All the marketing costs will be supported by the real estate assessor from his / her own expenses. If another agent brings the buyer, the fee will be shared between the two agents, with no extra cost for the seller;
o For sellers that don’t have the fiscal residence in Spain there is an extra fee. There is an obligation for the buyer to apply a 3% withholding tax on the agreed value of sale to prevent the non-resident from leaving the tax unpaid.