If you are planning to sell your property in Catalonia MySpot Barcelona is at your side at any step of the process. We make sure you understand the various fees and taxes and ensure a smooth transaction. 

1. Capital Gains Tax or Personal Income tax (IRPF; Plusvalía en Renta)

One of the primary taxes that house sellers in Barcelona need to account for is the Capital Gains Tax (Impuesto sobre la Renta de las Personas Físicas or IRPF). This tax is applicable on the profit made from the sale of the property meaning it applies on the difference between the value you acquired the property and the value you are selling it. The IRPF rate can vary depending on the length of ownership, with a lower rate for properties owned for more extended periods and can vary between 19-26% (Status 2023, objective to yearly changes).

It must be taken into account that from the sale value we must subtract the expenses and taxes of the sale that we have to assume as sellers (e.g. real estate commission), and from the purchase value we will have to subtract the amortizations (if any) and add the investments. Also keep in mind that there might be certain exemptions or reductions based on factors like reinvestment of the proceeds into another property within a specific time frame (e.g. if you invest in a new primary residency within 2 years of the sales of your primary residency). Consult a tax advisor to understand the tax implications in your specific case.

2. Municipal Capital Gains Tax (Plusvalía municipal):   

In addition to the CGT/IRPF, house sellers are also be subject to the Municipal Capital Gains Tax, commonly known as "Plusvalía" aka the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU). This tax is levied by the local municipality and is based on the increase in the land's value since the property was acquired. In 2023 the maximum applicable tax rate was 30% but each city council establishes its own tables and bonuses on yearly base to determine the amount to be paid by each taxpayer. Consult with your tax advisor for the current rates. The seller has one month from the date of the signing of the deed to cover this tax at the city hall (ayuntamiento). Its often possible to settle this tax directly via the notary that signs the deed. The information about the amount to be paid can be obtained by calling directly to the city hall with the details of the Impuesto sobre Bienes Inmuebles (I.B.I or Real Estate Tax) on hand and get the information via telephone.

3. Objective Increase in Taxable Base of Land Value (Incremento objetivo de la base imponible del valor del terreno).

Its calculated by multiplying the cadastral land value by a coefficient based on the number of years the seller has owned the property. The Spanish Treasury guidelines set the coefficient based on the time period the property has been owned (in 2023 the rates were at  0.14% for properties owned for less than a year, and 0.45% for properties owned for 20 years or more.) Data subject to yearly changes.

The Plusvalía tax rate depends on factors such as the property's location and the time of ownership.

4. Real Estate Agent's Commission:

Due to the competitive and complex nature of the real estate market in Catalonia, its common practice to engage a real estate agency like MySpot Barcelona to help with the property sale. The agent's commission is either a fixed price or percentage of the property's final selling price and is negotiated between the seller and the agent before listing the property. In Barcelona, the normal rate is anything between 3-6% but can vary on individual base.

5. Lawyer or Legal Advisor Fees:

Although not mandatory, it is advisable to hire a local lawyer or legal advisor to guide you through the selling process and ensure that all legal requirements are met. Their fees will depend on the complexity of the transaction and the services they provide. At MySpot we work with specialized real estate lawyers and are happy to make an introduction.

6. Mortgage Cancellation Costs:

If the property being sold has an existing mortgage, the seller may need to pay mortgage cancellation fees to release the property from the mortgage agreement. These fees can vary depending on the terms of the mortgage and the lending institution - but they typically range from a few hundred to a few thousand euros. As these costs can significantly impact your finances, it's essential to contact your lender directly and request a breakdown of the specific cancellation costs applicable to your mortgage (“provision de fondos”). The mortgage is canceled directly in the notary at the moment of signing the deed.

6. Energy Performance Certificate (Certificado de Eficiencia Energética or CEE):

Before selling your property, you are legally obliged to obtain an Energy Performance Certificate, which shows the property's energy efficiency. This certificate may come with a cost that can vary from €150 – €250.

Summary:

Selling a house in Barcelona involves several fees and taxes that house sellers must consider to ensure a successful and financially viable transaction. The Capital Gains Tax (CGT) on the profit made from the sale is a significant factor, along with the Municipal Capital Gains Tax (Plusvalía) based on the land's value increase. Real estate agent's commissions, notary and registry fees, and potential mortgage cancellation costs further add to the seller's financial responsibilities.

To navigate the property sale process effectively, seek advice from real estate professionals like MySpot Barcelona who are also happy to introduce you to financial advisors. By leaving house sellers well informed about the fees and taxes we empower them to make informed decisions and successfully complete the sale of their property.

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Disclaimer: The percentages and numerical information mentioned in the article are merely informative and orientate information and there is no guarantee that they are accurate or up-to-date, as the applicable legal and tax regulations are subject to constant changes and vary depending on the personal situation of each individual. For current and exact information, please contact your tax advisor. We are happy to put you in touch with a local advisor in Spain.