There are several costs involved in selling a property on the Costa del Sol, including agent fees, legal fees, and taxes. These can vary depending on your situation, but understanding them clearly from the outset helps avoid surprises and allows you to plan your sale properly.
What costs are involved in selling a property on the Costa del Sol?
This is one of the fundamental questions that comes into people's minds when they start thinking about selling their property.
There are a number of costs involved. Some are straightforward and some less so. It is important to try and understand them from the outset so that there are no surprises to come.
The main costs to consider
The most common costs when it comes to selling a property on the Costa del Sol are as follows:
• Estate agent's fees
• Legal fees
• Taxes related to the sale
• Plus any smaller administrative or preparation costs
Each of these plays a different role in the process and needs to be considered individually.
Estate agent's fees
Estate agent fees are often the first thing people focus on, which is perfectly understandable.
It is, however, worth looking at this in context.
The right agent is there not just to list and market a property, but to guide the process, manage the viewings, handle negotiations, and ultimately work towards achieving the best possible price.
In many cases, the difference between one agent and another can have a greater impact on the final selling price than the amount of the fee itself.
The experience of the salesperson means that a well-handled sale can achieve a higher figure than a poorly managed one, even after the fees are taken into account.
Legal fees
Their role is to ensure that everything is handled correctly from both a legal and administrative point of view. This includes the creation of contracts, documentation, and the important process of the transfer of ownership.
Most importantly, professional legal help will make sure you are properly advised on your individual situation, particularly where taxes are concerned.
In our opinion, this is not an area in which to cut corners.
Taxes
Tax is often the most complex part of the process and can vary depending on your personal circumstances. For example:
Whether you are resident or non-resident
How long you have owned the property
Your overall personal tax position
Capital Gains Tax will always be the main consideration, but there are also other elements that you should be aware of.
Plusvalía is the local municipal tax, which is based on the increase in the value of the land over the period of ownership.
For non-resident sellers, there is also a retention, currently 3% of the selling price. This is held back at completion and offset against any tax liabilities the non-resident may have in Spain.
These are areas where we cannot over-emphasise the need for proper advice. They are often best discussed in detail with your lawyer, who will take account of your individual situation.
Other costs
There can be smaller costs involved depending on the property and how it is presented for sale. These may include minor repairs or preparation work prior to selling, cleaning and presentation, energy certificate updates, and administrative charges. Individually, these are not significant, but they are worth taking into account.
Looking at costs in the right way
It's very easy to focus purely on the cost side of selling.
In reality, the most useful approach is to look at the overall result.
A well-managed sale, with the right advice and the right strategy, should not just cover its costs, but help you achieve the best possible outcome in terms of both price and timescale.
Further guidance on selling costs
If you would like a more detailed breakdown of the costs involved, on our website we have separately prepared guides with information for residents and for non-residents.
For non-residents, you can read our guide here: Costs of selling property in Spain for non-residents
For residents, you can read our guide here: Costs of selling property in Spain for residents
These pages go into more detail on taxes such as Capital Gains Tax, Plusvalía, and the 3% retention for non-resident sellers, and can help you understand how the figures may apply in your own situation.
The practical approach
If you are considering selling, the best starting point is to understand your likely costs clearly, alongside a realistic idea of value.
From there, you can make considered decisions about the price, the timing, and how you want to approach the sale.
Let's talk it through
If you're thinking about selling your property on the Costa del Sol and would like to explore the likely costs and see how they may apply to your situation, then we would be happy to talk it through with you. Please call us, without obligation, on (0034) 952 90 52 00, WhatsApp us, or email info@michael-moon.com
