Selling a property in Spain involves much more than setting a price and signing a deed of sale. It is a process that requires foresight, knowledge of the market and an understanding of the legal and tax obligations specific to the country. Whether you are a resident or non-resident, selling a property in Spain involves a series of steps, documents to provide, taxes to pay and costs to anticipate, which are often unknown to sellers.
Even before putting the property up for sale, certain steps are essential: obtaining the energy certificate, verifying the property’s compliance, and updating the cadastral information. Next comes the marketing phase, where agency fees, any renovation work and mandatory diagnostics can already represent a significant cost. At the time of the transaction, the seller must also pay various local and national taxes, and depending on their tax status (resident or non-resident), the amounts can vary significantly.
Once the sale is complete, other formalities may still be required, such as paying capital gains tax (municipal capital gains tax or income tax) or settling certain fees with the solicitor and the Land Registry. If these elements are not anticipated, they can significantly reduce the net profit from the sale.
This is why it is essential to fully understand all the costs and obligations involved.
That is why it is essential to fully understand all the costs and obligations involved in selling a property in Spain, in order to avoid unpleasant surprises and plan the transaction in the best possible way.
Selling a property in Spain requires preparation and knowledge of the procedures involved.
What Sellers Should Know About Fees:
1. Before Listing the Property
Even before finding a buyer, some costs may already be incurred by the seller:
1) Mandatory Inspections and Documents
The seller must provide an Energy Performance Certificate (Spanish DPE: Certificado de Eficiencia Energética), which generally costs between €80 and €200 depending on the size of the property.
Other documents may also be required: certificate of habitability, urban planning certificate, etc.
If a mortgage exists, it may be necessary to request a debt-free certificate from the bank or a deed of mortgage cancellation. The cost of canceling a loan/mortgage is usually around €800 to €1,000.
2) Mortgage or Lien Release Fees
If the property is subject to a mortgage (a guarantee given to a bank or another lender when borrowing money to purchase a property), the seller must ensure it is canceled before selling freely. This release involves notarial and registration fees.
The seller may also be responsible for the municipal tax on the increase in land value (plusvalía municipal), linked to the rise in cadastral value since purchase. This tax depends on the municipality and the number of years the property has been owned.
3) Real Estate Agency Fees
A real estate agency markets the property — photos, videos, listings, and visits. In Spain, agency fees are often paid by the seller.
The typical commission ranges from 3% to 6% of the sale price, excluding VAT (21%) which is added on top.
2. During the Transaction
When a buyer is found and the sale deed is finalized, other costs come into play.
1) Notary and Authentic Deed Fees
Although the buyer usually covers most notary and deed costs, the seller may be legally required to pay for certain parts related to the sale deed. The cost is regulated and depends on the property’s value. As a guideline, the authentic deed fees can range from approximately €600 to €875 depending on the sale price.
2) Real Estate Agency Commission
At the time of sale, the agency commission is generally due by the seller: typically 3% to 6% + 21% VAT.
Example: for a sale of €300,000 → €15,000 + €3,150 VAT = €18,150 total.
This commission can sometimes be negotiated, especially if the seller grants exclusivity to the agency.
3) Utility and Homeowners’ Association Fees
The seller must prove that all bills related to the property (water, electricity, gas) are paid, as well as homeowners’ association fees. If the sale occurs mid-quarter, an adjustment between seller and buyer may be necessary.
4) Withholding Tax for Non-Residents
If the seller is not a Spanish tax resident, the buyer must withhold 3% of the sale price at the time of signing and pay it to the Spanish tax authorities as an advance on the seller’s capital gains tax.
3. After the Sale
Following the signing, additional tax obligations apply to the seller.
1) Capital Gains Tax
The seller must declare the profit made:
Sale price – (purchase price + purchase costs + documented improvements) = taxable gain.
For Spanish residents, 2025 rates are expected to be:
19% on the first €6,000,
21% from €6,000 to €50,000,
23% from €50,000 to €200,000,
27% from €200,000 to €300,000,
28% above €300,000.
For non-residents: a flat rate of 19%.
For non-EU residents: 24%.
2) Municipal Capital Gains Tax (Plusvalía Municipal)
This local tax is based on the increase in the cadastral value of the land and the duration of ownership. It generally applies to the seller and varies by municipality.
Note: recent reforms have modified some situations where there is no real gain, which may affect whether this tax is due.
3) Property Tax (IBI) and Other Remaining Costs
The seller remains responsible for the annual municipal property tax (IBI) up to the date of sale. After that, the obligation passes to the buyer. Other costs such as utilities and community fees must be settled up to the transfer date.
4. Overall Estimate and Key Figures
In general, total seller costs may represent between 5% and 15% of the sale price, depending on location, residency status, and transaction complexity.
For example:
Agency commission ~5% + 21% VAT
Legal and mortgage cancellation fees ~€800–€1,000
Capital gains tax depending on profit
Variable plusvalía municipal
Note: autonomous communities may apply different regulations and tax rates.
5. Practical Advice for Sellers
Anticipate all costs before listing (inspections, mortgage cancellation, commissions) to set your net sale price accurately.
Ensure the property is free of any mortgage or lien to avoid delays at signing.
If you are a non-resident, factor in the 3% withholding and capital gains tax.
Request quotes from agencies, negotiate commissions, and confirm transparency (VAT included).
Consult a Spanish lawyer or tax advisor to fully understand national and local tax implications.
Check the specific autonomous community (e.g., Catalonia, Andalusia, Valencia), as rates and fees can vary.
Conclusion
Selling property in Spain involves more than signing a deed. The seller must cover various costs before, during, and after the transaction: inspections, mortgage release, agency commission, notary, capital gains tax, municipal tax, and other residual fees.
The total amount can represent a significant percentage of the sale price. Proper planning, accurate information, and professional support are key to controlling costs and avoiding unpleasant surprises.