Taxes payable by the vendor in Andalusia
There are generally two taxes to pay when you sell a property on the Costa del Sol. Municipal Plusvalia and Capital gains tax. Up until recently the Plusvalia was paid even if a property was sold at a loss, but a Supreme Court ruling in May 2017 declared that as unconstitutional and the plusvalia is now only paid if there is an economic gain, the same as the Capital gains tax. However each Town Hall applies this in a different way so please enquire depending on Municipally.
Municipal Plusvalia
This tax is a municipal tax based on the increase of the taxable value of the land during the time between the purchase and sale of the property. The tax has to be calculated individually. The longer the property has been owned the more you pay. Start Group will be glad to calculate the plusvalia for you when putting your property for sale, so that you have all the information from the start. Since new criteria was established in November 2021 the Plusvalia can now be calculated either on the actual profit (much like the capital gains tax) or by multiplying a coefficient (established by each Town Hall) with the cadastral value of the property. The taxpayer can choose the most beneficial way to calculate the tax.
Capital Gains tax
At present the tax for tax residents is 19% for the first 6.000 Euros gain, 21% for the amount between 6.000 and 50.000 gain, and 23% for amounts over 50.000 Euros. For non-residents the capital gains tax is 19%. The capital gain is calculated on the actual gain which means that you are allowed to deduct the closing cost you had when you bought; ITP/IVA/AJD, notary fees, land registry fees, lawyer fees and the cost when you sell i.e. plusvalía tax, real estate agent and lawyer fees.
Fiscal retention for non-residents
For non-resident vendors the buyer is required by law to withhold 3% of the purchase price and pay that directly to the tax office on the vendor’s behalf. This is a measure to prevent tax evasion by the vendor who resides in another country. The vendor has 90 days after the payment has been done to submit a tax return for capital gains tax which will show how much has to be paid. If there is no gain in the sale the 3% will be paid back to the vendor by the tax authorities. This can be paid into a Spanish bank account or an account held by the vendor in another EU country.
