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Seriously though, if you're a non-resident thinking of selling your property on the Costa del Sol, it's important to understand the taxes and legal costs involved. This guide outlines the main expenses so you can avoid surprises and make informed decisions.
The gain is generally calculated from the difference between the acquisition and sale values, taking into account allowable purchase and sale costs and qualifying improvements. Your lawyer or tax adviser should calculate the actual liability for your individual circumstances.
By law, when a non-resident sells a property in Spain, the buyer normally withholds 3% of the agreed sale price and pays it to the Spanish tax authorities on the seller's behalf. This is not an additional tax but a payment on account of any Capital Gains Tax liability.
Once the final tax position has been calculated, any additional amount due must be paid. If the 3% retained exceeds the tax liability, the seller can claim the appropriate refund.
Plusvalía is a local tax charged by the Town Hall on the increase in value of the urban land on which the property stands during your period of ownership. It is separate from Capital Gains Tax.
If there has been no increase in the value of the land, Plusvalía should not be payable, although the sale still needs to be declared and the appropriate evidence provided. In a non-resident sale, the lawyers will usually calculate the amount and retain sufficient money from the purchase price at completion to make sure the tax is paid.
Agency fee: 5% + IVA, success-only (no sale, no fee).
Lawyer’s fee: Typically 1% + IVA, potentially negotiable for higher-value properties.
If you have a mortgage — or had one that hasn’t been fully removed from the Land Registry — you’ll need to budget for cancellation fees (usually €500–€1,000). We recommend checking with your bank early in the process.
IBI, basura and normal community fees should usually be brought up to date before completion. If an amount is still outstanding, this does not necessarily prevent the sale. Your lawyer can normally arrange for it to be paid or, where appropriate, for sufficient money to be retained from the purchase price at completion so that the outstanding liability can be settled.
A community may also approve a derrama. This is an extra payment, separate from the normal community fees, to pay for specific works or improvements, for example refurbishing the swimming pool, repairing the building or making changes to the communal gardens.
If a derrama has been approved, it is important to disclose it when selling. The buyer's lawyer will normally check the position with the community, so it is much better for everyone to know about it from the outset. Under Spanish law, each payment is the responsibility of whoever owns the property when that particular payment becomes due, although outstanding or future payments can also form part of the negotiations between buyer and seller. Your lawyer can check the payment schedule and make sure whatever is agreed is properly dealt with before completion.
If you need a recommended lawyer who speaks your language, we’ll be happy to help.
For straightforward guidance and support with your property sale, please don’t hesitate to contact us:
Call us on (0034) 952 90 52 00, WhatsApp us, email info@michael-moon.com, or use the contact form below.
Selling a property naturally raises questions. We've brought together answers to many of the questions sellers regularly ask us.
