Expenses that correspond to the purchase and sale of a property
The expenses that correspond to the owner at the time of sale are:
The Real Estate agent’s commission, which is usually a percentage of the price of sale and may vary depending on the agency and the price of the property. In Sotogrande and the surrounding area it is usually 5% of the final price of sale.
Transfer expenses and taxes
The expenses that correspond to the seller owner on transferring the property depend on whether they are covenanted in accordance with the Law or on account of the buyer:
1.- If they are covenanted in accordance with the law (Civil Code), the seller must pay the Notary’s expenses for the authorised copy of the deed (first copy), and the other expenses are paid by the buyer. The Notary’s fees are established in accordance with the price of the purchase-sale and the number of pages of the deed.
However, it is customary to covenant that all the expenses are on account of the buyer, with the exception of the municipal capital gains tax.
2.- Municipal capital gains tax or tax on the increase of the Value of Urban Land (IIVTNU) is a municipal tax on the increase of the value of the land from the time of purchase until the date of sale.
3.- Likewise, the seller must pay all the taxes, rates and expenses of the property, such as the property tax (IBI), municipal rubbish charges or any other that burdens the property, Community of Property Owner fees, electricity, water, telephone, etc., until the day on which the deed of sale is signed.
In the event these expenses cannot be calculated with precision on said date, the buyer or his/her legal representative usually withholds from the final payment a certain amount to cover any such possible expenses.
In general, the costs associated to the purchase of a property that have to be assumed by the buyer may range approximately between 11-13% of the purchase price, and are the following:
1.-Direct taxes on the purchase, in which there may be two different situations:
A.- Tax on Transfers of Property (ITP) of 7% in Andalucía
In Andalucia the tax rate for dwellings or second hand properties is 7% of the value of the property, and the tax has to be paid by the buyer.
As of the 1st of January 2022, in accordance with Law 11/2021 of measures for the prevention and fight against fiscal fraud, this tax is calculated on the basis of the larger of two values, namely the value of reference certified by the Cadastre or the value that appears in the deed of sale (7% over the larger of the two values).
B.- VAT is applied to the price of sale instead of the ITP on properties that are sold directly by the Developer, and it is incompatible with the property transfer tax.
In general, in the case of the first sale of the property, the VAT on built dwellings is 10% of the purchase price plus 1.2% of the Stamp Duty Tax (Impuesto de Actos Jurídicos Documentados).
In the case of land, business premises and commercial garage spaces owned by a Developer or legal entity, the tax that has to be paid is 21% VAT, plus 1.2% of the Stamp Duty Tax.
3.- Other expenses
A.- Land Registry Fees – The Registry fees have to be paid by the buyer, and are calculated on the same basis as the Notary’s fees.
B.- Notary’s Fees – By law, the authorised copy of the deed of sale, or first copy of the deed of conveyance of ownership, has to be paid by the seller, unless otherwise covenanted by the parties. It is usually agreed that the buyer pays all of the Notary’s fees.
C.- Lawyer’s Fees – The fees of the lawyer who intervenes in the purchase and sale transaction are usually about 1% of the price of sale, depending on the lawyer and the price of the property.
(This information is only provided for guidance purposes and may vary. The tax rates mentioned are the ones in force at the time this information is published on our website. We strongly recommend that you consult your lawyer in order to find the taxes and specific fees that have to be paid in connection with the property in which you are interested.)
Our procedure when you decide to sell your property:
When you decide to sell your house, all you have to do is call us to arrange for a visit to discuss the current conditions of sale of properties. As a real estate agency in Sotogrande and its surrounding area, we have extensive experience and will give you an honest opinion regarding the value of your property.
In order to list your property, you must provide:
- A copy of the deed of purchase, or mortgage note
- A copy of the last property tax receipt (IBI)
- A copy of the last receipt for Community fees
- A copy of the owner’s/owners’ DNI, NIE or passport
- A signed commission agreement
- An energy certificate for the property
Our fee for the sale of your property is 5% of the final sale Price, plus VAT.