Selling a property in Spain is subject to taxes and other expenses. Below you will find an overview of the most important categories.
If you sell your property for a higher amount than for which you bought it in the past, you have to pay Impuesto sobre el Incremento de Valor de los Terrenos Urbanus (Plusvalia). The base for taxation is the difference between the purchase price and the selling price. The tax rate is progressive and varies between 19% and 23%. In addition, the notary will withdraw 3% of the agreed selling price, when you're not a Spanish resident. This is to prevent tax evasion. In the past, many vendors tent to leave Spain after selling their property without the Spanish government knowing their new place of residence. As a result, Spanish taxes often weren't paid. By withdrawing 3% of the price this will be prevented. This payment can be seen as a payment in advance. The vendor is obliged to send in a tax declaration within 3 months after he has sold his property. In case the already paid 3% is insufficient, the vendor has to pay the difference.
If you sell your property for a lower amount than for which you bought it in the past, you don't have to pay Plusvalia.
Below you will find a description of other additional expenses which occur when selling your property. The sum of these costs can be deducted of the amount of Plusvalia which you are required to pay.
Example: you have bought your property for an amount of EUR 210.000 in 2007 and you have sold the same property for EUR 225.000 in 2017 and you have additional expenses of EUR 5.000. In principle, you're obliged to pay taxes over the amount of EUR 15.000. However, since you have additional expenses of EUR 5.000, you can deduct these expenses of the amount of EUR 15.000. This means that you have to pay Plusvalia over the amount of EUR 15.000 – EUR 5.000 = EUR 10.000.
In addition to notary costs, valuation costs and other described costs you're also obliged to have a valid Energy Performance Certificate. This certificate is part of European legislation and gives the buyer information about the energy usage of the property. Without this certificate you're not allowed to sell your property. Once you bought this Energy Performance Certificate, it stays valid for 10 years. After those 10 years, you have to buy a new certificate.