What Taxes are Paid when Selling a House?

When selling a property, it is essential to be clear about the expenses you will have to face and be financially prepared. A large part of this expense is usually used to pay taxes, which reduces the net amount obtained from the transaction. Therefore, in today’s article, we delve into what taxes are paid when selling a house.

Expenses of Selling a Home

Before putting the house up for sale and starting to think about the taxes to pay, one of the first steps is to gather all the necessary documentation. At this stage, it is very likely that you will already have to face some expenses. For example, it is usually necessary to request or renew the energy efficiency certificate, the certificate of occupancy or the simple note. Therefore, we recommend consulting our previous article on the necessary documentation to sell your home.

Once you have gathered all this information, it will be time to think about taxes. It is very important to be aware of everything that must be paid and to do so within the established periods. Otherwise, you may have to face very high fines and penalties.

Taxes on the Sale of a Home

One of the most frequent questions among owners is how much do you have to pay the Treasury for the sale of a house. To begin with, it should be noted that the taxes that are paid and that we will detail below are indicative. The conditions may vary depending on the region in which the property is located and each particular case. Therefore, the most recommended thing to get a clear idea is to contact a professional.

• Municipal Capital Gains Tax: This is a local tax that is based on the increase in the value of the land where the property is located during the time it has been in the seller’s possession. It is a key element in the taxation of real estate transfers and must be paid within thirty business days after the sale. The taxable base of the municipal capital gains tax is calculated taking into account several factors, such as the cadastral value of the land, the number of years that the seller has been in possession of the property or the coefficient of increase in land value established by the city council. It should be noted that if a property is sold for a price equal to or lower than its acquisition value, municipal capital gains tax should not be paid.
• Personal Income Tax (IRPF): In the event that the property has been sold for a higher price than what was paid at the time of purchase and a capital gain has been obtained, the IRPF can be applied to the capital gain generated with the sale. These revenues obtained must be presented in the income tax return of the year following the sale of the property, but it is interesting to take into account that there are certain exceptions.
• Real Estate Tax (IBI): Finally, although it is not a tax specifically associated with the sale of the property, the IBI is an annual tax that can be prorated between the buyer and the seller depending on the date of the sale.

Do You Need Advice for the Sale of your Home?

As we mentioned at the beginning of the article, it is important to keep in mind that the taxes that are paid when selling a house may vary depending on the autonomous community or the country of residence. That is why the most recommended thing, before making the decision to sell a house, is to contact a manager or real estate lawyer who can advise you on all the associated expenses. Once you have been informed of everything that the sale implies fiscally, it is time to contact the real estate agency that will be in charge of managing the operation. At Espígul, we have more than 36 years of experience in the real estate sector. Count on us to carry out the most appropriate appraisal for your property and to find the ideal buyer within our portfolio of interested parties. We will be by your side and guide you in each step of the process. Do not hesitate to contact us!