The costs and taxes of selling a property in Ibiza
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You’ve decided to sell your house in Ibiza but before deciding on the final price, be aware that as a seller you will be responsible for certain costs. So today we have come up with a list of costs and taxes to help you better understand what to expect.
3% Non-Resident Retention
If you are a non-resident in Ibiza, 3% of the sale price will be retained by Hacienda (the Spanish tax authority.) If you have been paying your annual non-resident taxes and there is no other tax owed, this money will be refunded to you within approximately ten months from the date of sale.
PlusValia
This is a municipal tax based on the increased value of the land on which the property is located. The amount you should pay is based on the cadastral value and the number of years you have owned the property and is calculated to the day you complete the sale.
Solicitor or Gestoria
It’s always better to hire a professional to help you organise all the paperwork. In general, solicitors fees vary from 0.5 to 1.5% of the sale price, plus current VAT. Another option is a Gestoria. The gestor is a unique figure in Spain, a kind of financial and legal consultant who specialises in administrative matters dealing with the government. Fees are typically 1% of the sale price. Be sure to clarify before committing.
Estate Agent
Generally speaking, the seller pays the estate agency fees which is more or less 1%, but make sure to clarify who pays and how much before signing any sales and marketing agreement. This fee is usually paid out from the proceeds of the sale.
Capital Gains
In basic terms, whether or not you have to pay capital gains is based on the difference between what you paid for a property and what you are selling it for. However, there are few other factors to take into consideration:
• whether you are resident or non-resident
• whether you are planning to use the money to purchase another property in Spain
• whether you under 65 or over 65
Any of these may change your situation so the best way to proceed is to consult a solicitor experienced in these matters.
Utilities
You are responsible for being up to date on electric and water bills. You will need to provide a current bill to the buyer or their representative.
IBI and Garbage
The owner of the property on January 1st is usually responsible for paying that year’s IBI or council tax on the property as well as the rubbish collection. At the notary, you will need to present your latest bill and receipt for payment.
Community Fees
If your property has community charges, you are responsible for paying them. At the notary, you must provide a certificate from the community administrator as proof you are up to date. Please note the community may charge you a fee for the certificate.
It’s not only about the costs you should be aware of, read our previous blog “Sell in Ibiza: what you need to know” to learn about the process and the documents needed to sell your property in Ibiza.
