We know that selling your home is quite a big endeavor and at IBZ Link, we can accurately price your property and help you navigate the transaction. We have an extensive network of national and international buyers and we advertise and publicise directly in both local and international markets. We also offer our clients exclusive access to properties that haven’t yet been listed on the market in our newsletter.
Costs and taxes related to selling a property in Ibiza
There are various costs and taxes that sellers in Spain must pay when selling their property. These costs are broken down accordingly:
Lawyers’ fees
In general, they range from 0.5 to 1.5% of the sale price, plus current VAT. These fees must be agreed upon at the start of the contractual relationship and must be maintained throughout that relationship, except where the initial assignment undergoes considerable modifications at the client’s explicit request. The solicitor’s fees are an expense that can be deducted when calculating the Capital Gain Tax associated with the sale.
Estate agents’ fees
This is usually 5 % of the sale price, plus VAT at the current rate of 21%. The estate agent’s commission is paid by the seller when the deed is signed, once the total sale price has been received. This cost can also be deducted when calculating the taxable capital gain.
Capital Gains Tax
Capital gain is determined by the difference between the sale value and the acquisition value of a property, or in other words, the tax on profits from selling a property. Spain’s capital gains tax is 19% for people living in the EU.
Plusvalía Tax
This is a municipal tax set by the local government which is calculated by the “cadastral” value of the land and the number of years since you initially purchased the property. It is normally a modest amount of a few hundred euros and is paid by the seller.
Energy performance certificate
In compliance with European laws on energy and environmental issues, the owners of existing homes must provide potential buyers with the property’s energy performance certificate, which must be issued by a qualified technician. These certificates range from 150-500€.
Non-residents and taxes
When the seller is not a resident of Spain, the buyer is under the obligation to withhold a percentage of the purchase price. The percentage is set by law and is currently fixed at 3%. The buyer must pay this sum to the Spanish Treasury within a maximum period of one month to offset any possible taxes owed through the capital gains tax.
Required Documents
Certificate of title (Escritura)
This is the document detailing the entirety of your property. It states the change of legal ownership from one party to another, and when signed by the Notary will be sent to the land registry to change the ownership information of the Catastro.
Nota Simple – Note from the Land Registry
This is a legal report identifying various characteristics about the property, i.e. accrediting the owners, descriptions of the house, plot and mortgages, etc. This can be obtained by the Registro de la Propiedad.
Impuesto sobre bienes inmuebles (IBI) – Property Tax
This is a municipal tax collected annually and when selling your property you should present the last receipt of payment.
Habitability Certificate (Cédula de habitabilidad)
This is a stamped document issued by the Consell de Ibiza stating that your property meets the basic requirements to be inhabited, i.e. being connected to electricity, having fresh running water, etc. The certificate is valid for 10 years but takes between 2-4 months to renew if expired.
Energy Certificate
This is a document outlining the energy efficiency of the property being sold and can be issued by a qualified technician.
Catastro information
The Catastro number is given in the Certificate of title (Escritura) and the Note from the lang registry which is used by the government for the land registry. This document delineates the property marking special features and exact property boundaries.
Identity card
This can be your DNI, NIE, or passport and is used to prove your residency/non-residency status when determining capital gains.
For further information about selling your property feel free to contact us, we are happy to answer any questions you have.
