Understanding the Costs of Selling a Property on the Costa Blanca
Selling a property, particularly in a location as desirable as the Costa Blanca, requires an in-depth understanding of various costs. Let’s dive into what you can expect when selling your property in this beautiful area.
Plus Valia
Plus Valia, a municipal tax, can be a bit perplexing if you’re not familiar with the ins and outs of Spanish property laws. It’s calculated based on the increase in the land value of the property from the time of purchase to the time of sale. The location, size of the land and the length of ownership are all taken into account when calculating this tax. Understanding Plus Valia can give you a clearer picture of the costs involved in selling your Costa Blanca property.
Community Fees
Community fees are an important aspect to consider when selling a property on the Costa Blanca. These are the costs associated with maintaining common areas of the property community such as swimming pools, gardens, and security. Potential buyers will want to know about these ongoing costs, so ensuring all payments are up-to-date is an essential part of the selling process.
IBI and Utilities
IBI, or the Real Estate Tax, is a municipal tax based on the cadastral value of the property. If you’re selling mid-year, it’s common practice to apportion this cost between the buyer and seller. Along with IBI, you’ll also need to settle any outstanding utility bills – water, electricity, and so forth, to provide a clean slate for the new owner.
Mortgage Settlement Fees
If you’re like many property owners and have a mortgage on your property, you’ll need to account for mortgage settlement fees. These are fees that your bank may charge for the early repayment of the mortgage at the time of sale.
Non-Resident Retention
As a non-resident seller in Spain, you should be aware of the retention tax, which is 3% of the selling price. The tax is retained by the buyer on behalf of the seller and paid directly to the Spanish Tax Authority.
Tax Obligations When Selling a Property in Spain
Understanding your tax obligations is critical when selling a property in Spain.
Legal Fees
Legal fees are a necessary part of the property selling process in Spain. They include costs for a solicitor or lawyer who can guide you through the legal intricacies of selling your property.
Habitation Certificate
A Habitation Certificate, or ‘Cédula de Habitabilidad’, is a document that confirms a property meets the Spanish government’s habitability standards. Obtaining a valid certificate is the seller’s responsibility and is mandatory when selling a property.
Energy Performance Certificate
Similarly, an Energy Performance Certificate (EPC) is another key document required when selling a property in Spain. This certificate provides information about a property’s energy use and typical energy costs. Sellers are required to obtain and provide this certificate to the potential buyer.
Estate Agent’s Commission
Lastly, the services of an estate agent are usually sought when selling a property. The agent’s commission is generally a percentage of the selling price, and it’s wise to factor this into your cost considerations when you’re planning to sell.
In the complex world of real estate, particularly in areas as popular as the Costa Blanca, understanding the costs and tax obligations associated with selling a property is crucial. I hope this guide provides you with valuable insights and aids in your property selling journey.
Juan Micó, Director of iberohomes.com, API Associate No. 132
