What Are the Seller's Expenses When Selling a Property in Cullera?

Here’s Everything You Need to Know

Selling your apartment, house, or commercial property is one of the most important and complex decisions you can make.

However, most people focus primarily on the selling price and potential profits, overlooking the expenses associated with the transaction.

These expenses can vary depending on several factors, such as the type of property, location, and services contracted.

In this article, we break down all the possible costs a seller may face when selling their property, including real estate fees, taxes, and other legal expenses.

1. Municipal Capital Gains Tax: Tax on the Increase in Land Value

One of the most common expenses for the seller is the municipal capital gains tax, which is paid to the corresponding City Council. This tax is calculated based on the cadastral value of the land and the number of years of ownership of the property. The municipal capital gains tax can be applied based on the selling price or on the increase in land value during the ownership period, depending on the chosen calculation method. The seller can choose the calculation method that benefits them the most.

• Calculation: The calculation depends on the coefficients set by the City Council and the time the seller has owned the property, based on the price difference between purchase and sale or the cadastral value.
• Maximum rate: The maximum tax rate is 30% in many cases, but each municipality can establish its own rate. In the particular case of Cullera, the City Council applies the maximum rate of 30%.
  
  

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2. Income Tax: Capital Gains Tax

The Personal Income Tax (IRPF) applies when the seller makes a profit from selling their property. The capital gain is the difference between the selling price and the purchase price, adjusted for expenses related to both the purchase and sale of the property.

• Taxable base calculation: The difference between the selling price and the purchase price is calculated, including expenses incurred during the purchase (notary, taxes, etc.) and the sale (notary, real estate agency, etc.).
• Tax rates: The rate varies depending on the taxable base and can range between 19% and 28%, depending on the profit obtained.

3. Notary and Registry Fees

Although notary and registry fees are usually more associated with the buyer, the seller must also cover some of these costs. When the sale deed is formalized, a notary’s intervention is required, and in some cases, registration in the Property Registry if a prior registration is needed before the sale.

• Notary fees: Notary fees depend on the selling price and the complexity of the deed but are usually moderate for the seller.
• Registry fees: Generally, there is no registration cost since the seller’s details are already in the registry. However, in some cases, a prior registration is required before the sale, such as in the case of an inheritance or the dissolution of co-ownership. In these cases, there will be pre-sale costs (notary, registry, and possible taxes) that must be paid before the seller can sign the property sale deed.
  
  

4. Real Estate Agency Fees

If you manage the sale of your property through a real estate agency, you will need to consider their fees. Agencies typically charge a commission ranging from 2% to 5% of the selling price.

• Standard commission: For example, if you sell a property for €200,000, the real estate commission could be between €4,000 and €10,000.
• Additional services: Some real estate agencies offer extra services such as legal advice, market analysis, or visit management, which could increase their costs.
  
  

5. Energy Certificates and Other Legal Costs

In Spain, the seller is required to provide the buyer with an energy efficiency certificate. This document certifies the property’s energy efficiency and costs between €100 and €300.

• Other certificates: Depending on the autonomous community or property, you may need other certificates, such as the certificate of occupancy. If the property is part of a homeowners’ association, a certificate confirming that the seller is up to date with all community fees must also be provided. The issuance of this certificate may have an associated cost, although it is generally low.
  
  

6. Inheritance and Gift Tax (if applicable)

If the property was inherited or received as a gift, the seller may be subject to the Inheritance and Gift Tax. This tax is calculated based on the value of the property received through inheritance or donation, and rates vary according to local legislation.

Summary: What Are the Main Expenses When Selling a Property?

Selling a property is not just about receiving money from the sale; it also involves associated expenses that the seller must consider. The main expenses are:

1. Municipal Capital Gains Tax: A tax paid to the City Council for the increase in land value.
2. Income Tax: A tax on the capital gain obtained from the sale, with a rate ranging from 19% to 28%.
3. Notary and Registry Fees: Notary fees and possible costs for registering the sale in the Property Registry.
4. Real Estate Agency Commission: Between 2% and 5% of the selling price when managed through a real estate agency.
5. Energy Certificates and Others: Costs associated with the legal certificates required for the sale.
6. Inheritance and Gift Tax (if applicable): If the property was inherited or received as a gift.

It is essential that the seller is well-informed about these expenses before listing their property for sale. This way, they can accurately calculate their profits and avoid unpleasant surprises during the process, as has sometimes happened due to poor advice.

Having proper legal and tax advice can help optimize the management of these expenses and ensure that the sale is carried out efficiently.

We hope this article helps you understand the expenses you may face when selling a property.

If you have any questions or need more information, feel free to leave us a comment or contact us.