Selling property costs?

[alig99]

Can anybody provide me with approximate costs of selling a property? Lets say we accept an offer of 300,000 euro to make the maths easier.

[fincalospinos]

You will have some if not all of the following costs:

Estate Agent - anything from 5K - 20K

Retention of 3% of sale price, but some of this may be reclaimed, or you may have to pay a little more, depending on what your CGT liability is. The CGT rate is 19%.

Plusvalia Tax is a tax set by the local authorities and based on the increase of the value of the land from the date you acquired the property to the time of the present sale. The rate of this tax is set by your local Town Hall.

[Lavanda]

In the current financial climate if there is no capital gain but a capital loss does the government give a rebate???

[fincalospinos]

In the current financial climate if there is no capital gain but a capital loss does the government give a rebate???

Yes, use form 212

[Beachcomber]

We seem to be assuming you are non-resident.

You now use form 210 to reclaim the retention not 212. You will be able to reclaim the amount of the retention so long as you have been paying your non-resident taxes.

Also bear in mind that the purchaser will have to declare at least the result of applying your municipal multiplier to the valor vatastral of the property even if the actual sale price is less.

See also an item in the FAQ here:

viewtopic.php?f=42&t=27591

[alig99]

Thanks for the info, what about lawyer fees, any ideas on these all I'm looking for is a rough guesstimate to ensure we have enough funds to cover costs. thanks ali

[Beachcomber]

If it is straight forward sale there is even less need for a lawyer when selling than there is when purchasing. If you are non resident the 3% retention will be deducted from the sale price. You don't need to pay it up front.

If you contact your local town hall they will give you an estimate of the plus-valía. The seller may want to withhold an amount to cover this because if you are a non-resident and leg it back to the UK without paying it the debt will revert to the property and the new owner will have to pay. Some town halls have an online facility to check the amount of plus-valía payable.

If you don't have the wherewithal to do it yourself you can use an asesor fiscal to calculate and submit your capital gains tax return.

Your only other expense may be for a translator to translate at the notary's office.

[Lavanda]

... and if the seller-at-a-loss is a resident?

[Beachcomber]

A resident doesn't have 3% deducted from the purchase price so there is nothing to claim back.

[Lavanda]