Agency commission is 5% on the sales price + 21% IVA.
Lawyers' fees are 1% on the sales price + 21% IVA. A lawyer is by law obliged to having insurance for any possible mistakes made during any legal interaction on the sale of your property.
The Plusvalía is a municipality tax on sale of a property, based on the increase in value of the land on which the property stands. The base for this tax is the "valor catastral" stated in the I.B.I. receipt. The amount due depends on years of ownership + area tariffs determined by the tax authorities. The final selling price has no effect on the Plusvalía tax.
If the vendor is a Non-Resident, the buyer is obliged to withhold 3% of the purchase price and pay the amount to the tax authorities. This ensures sufficient funds in Spain for any unpaid tax bill (many Non-Residents forget to pay their yearly Non-Resident income tax). Vendor's lawyer can after completion apply for the amount to be refunded, provided the sale is without profits, and all taxes have been paid.
The Vendor is responsible for the payment of the capital gains tax (all though the amount is normally withheld by the buyer upon completion). This tax is applicable, when profits on the sale are higher than the 3% Non-Resident retention. The tax rate on the difference is 21%. Any conveyance costs involved in the buying and selling of the property can be deducted, i.e. purchase tax, invoices from agents, architects, builders, lawyers, land registry, notary, provided they are accompanied by original invoices.
Vendors of 65 years of age or more are capital gains tax exempts, provided they are Fiscal Residents in Spain and have lived in the property as primary residence for more than 3 years. Also exempt are vendors less than 65 years of age, provided they are Fiscal Residents in Spain and have lived in the property as primary residence for more than 3 years, and the profits are reinvested in another primary residence within a maximum of 2 years after completion.
Mortgage cancellation fees normally vary between 0,5 – 1% on the outstanding amount due.
Please note that you cannot go to balance and completion without having cleared all your outstanding debts and unpaid bills on the property you are selling, including having cleared unpaid non-resident income tax during years of ownership of the property, unpaid community fees, unpaid council tax, etc.
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