Casa Marbella
Seller's Guide
Everything you need to know about selling property in Spain
Professional Support for Sellers
A Key to Success in Today's Market
With decades of experience in the management and intermediation of real estate transactions, Casa Marbella strongly recommends that anyone considering selling a property engage the services of a qualified professional. Today's real estate market has changed significantly, and a strategic, expert-guided approach is essential to avoid missing potential buyers.
In a dynamic market characterised by price fluctuations, property values can shift daily. Pricing is a critical factor in any sale and must be continuously aligned with current market conditions. At Casa Marbella, we conduct ongoing market research and investment analysis, supported by targeted international advertising campaigns. This enables us to accurately reflect buyer demand and position each property for maximum visibility and impact.
Our deep understanding of the Costa del Sol market ensures that our clients receive expert guidance from the very beginning. Sellers should be aware of key considerations before entering the sales process—timing, pricing strategy, and presentation are just a few of the elements that can make the difference between a missed opportunity and a successful transaction.
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The Seller's Tax Liability in Spain
When selling a property in Spain, the seller is responsible for paying Capital Gains Tax (CGT) on any profit made from the sale. This tax is based on the difference between the original purchase price and the final sale price.
Capital Gains Tax (Impuesto sobre el Incremento de Patrimonio)
As of January 1st, 2012, the Capital Gains Tax rate in Spain increased from 19% to 21%. This applies to non-resident individuals selling property in Spain. (Note: Current rates may differ—legal or tax advisors should confirm based on up-to-date legislation.)
Deductible Expenses
Certain transaction-related expenses can be deducted from the capital gain, provided that they are backed by official invoices or receipts. These deductible costs may include:
- Purchase-related taxes (such as ITP or VAT)
- Notary fees (on both purchase and sale)
- Legal and advisory fees
- Real estate agency commission
- Land registry fees
- Renovation or improvement costs (subject to proof and timing)
These deductions can significantly reduce the taxable gain and, therefore, the final amount of CGT payable.
Important Tip
It is essential that all expenses to be deducted are documented with official receipts (facturas) to be recognised by the Spanish Tax Authorities. We recommend working closely with a qualified tax advisor to prepare an accurate calculation and submit your declaration properly.
Plusvalía Tax
Tax on the Increase in Value of Urban Land
In addition to Capital Gains Tax, sellers in Spain are typically responsible for paying the Plusvalía Tax, a municipal tax levied by the local town hall (Ayuntamiento). However, in some cases, this tax can be negotiated as part of the sale agreement and paid by the buyer—though this is less common.
What is Plusvalía?
The Plusvalía Tax is not based on the sale price of the property, but rather on the increase in the value of the land over the period of ownership. It applies only to the value of the urban land, not the buildings or improvements constructed on it.
How is it Calculated?
The amount due is determined by the local municipality and is based on:
- The cadastral value of the land (Valor Catastral del Suelo)
- The length of time the property has been owned by the seller
- A multiplier rate and tax rate set by the local authority
Each town hall applies its own rates and calculation formula, which means the final amount can vary significantly depending on the location of the property and how long the seller has owned it.
Important Notes
At Casa Marbella, we recommend discussing this tax obligation in advance with your lawyer or tax advisor so that it can be correctly accounted for in the financial planning of your sale.
Encumbrances and Mortgage Cancellation
Before a property can be legally transferred to a new owner, any existing financial encumbrances—such as mortgages or charges against the property—must be fully addressed and cleared.
Mortgage or Encumbrance Cancellation
By default, it is the seller's responsibility to pay for the cancellation of any encumbrances recorded against the property unless otherwise agreed in writing. This includes:
- Existing mortgages
- Liens or charges for unpaid debts
- Other legal restrictions on the title
The cancellation process must be formally registered with the Land Registry (Registro de la Propiedad) and may involve notary and registration fees, as well as settlement costs with the lender.
Transferring an Existing Mortgage
(Subrogation Option)
In some cases, the buyer may wish to take over the seller's existing mortgage (a process known as subrogación). This can potentially offer cost savings on setup fees, especially if the mortgage terms are favourable.
Important Note: Buyers considering this option should consult carefully with their lawyer and mortgage advisor, as:
- The bank must agree to the transfer
- The buyer must meet the lender's financial criteria
- The interest rate, repayment terms, and conditions must be fully reviewed
At Casa Marbella, we ensure that all encumbrances are properly disclosed and resolved before completion. Our experienced team works alongside legal professionals to make sure the property is transferred with a clean and clear title, giving both buyer and seller full confidence in the transaction.
3% Retention for Non-Resident Sellers
If the seller is a non-resident of Spain, the buyer is legally required to withhold 3% of the total purchase price and pay this amount directly to the Spanish Tax Authorities (Agencia Tributaria) at the time of the sale.
This is not an additional cost, but rather a tax withholding mechanism designed to ensure that Capital Gains Tax (CGT) obligations are fulfilled.
Purpose of the Retention
The 3% retention acts as an advance payment toward any potential Capital Gains Tax owed by the seller. It is a safeguard to prevent sellers from avoiding their tax responsibilities after the sale.
Post-Sale Tax Reconciliation
Once the sale is complete and the seller's tax return has been filed, one of two outcomes will occur:
- If no capital gain was made or the amount withheld exceeds the CGT owed, the seller can request a refund from the tax authorities.
- If the actual CGT exceeds the 3% retention, the seller will be required to pay the difference.
Legal Responsibility of the Buyer
If the buyer fails to withhold and pay this 3% retention, they may be held personally liable for the seller's unpaid Capital Gains Tax. Therefore, this step must be handled with care and is typically coordinated by the buyer's lawyer at the time of completion.
At Casa Marbella, we ensure that all parties are fully informed about their tax responsibilities. We work closely with trusted legal and tax professionals to make sure all requirements—including the 3% retention—are properly executed, protecting both buyer and seller from future liability.
Our Support for the Sale of Your Home
At Casa Marbella, we are committed to providing our clients with a seamless, secure, and highly personalised experience when selling their property. Our team offers end-to-end support throughout the entire sales process, with a focus on clarity, professionalism, and multilingual service.
Multilingual Assistance
We handle enquiries and provide client support in six languages: Spanish, English, German, French, Turkish, and Arabic—ensuring that our clients feel confident and understood, no matter where they come from.
Financial & Legal Support
- We facilitate professional financial support solutions tailored to each client's needs.
- We offer comprehensive legal and fiscal advice, based on years of experience and partnerships with respected local lawyers and tax professionals.
- We do not work exclusively with any one lawyer, ensuring impartiality—but we are happy to recommend qualified experts based on your preferred language and legal needs.
Full-Service Sales Preparation
From the moment you choose to list your property with us, we take care of everything:
- Preparation and documentation of the sale
- Coordination with legal and notarial offices
- Strategic marketing and exposure across our networks
- Assistance with property presentation and viewings
Once the sale is complete, we continue to support you by:
- Transferring utility contracts (electricity, water, internet, etc.)
- Notifying the community of owners about the change in ownership
- Setting up direct debits for the new owner's convenience
Trusted Network of Professionals
We can connect you with the most reliable and professional service providers, including:
- Lawyers and legal advisors
- Notaries
- Builders and renovators
- Architects, interior designers, and more
All carefully selected based on performance, trust, and client satisfaction.
Personalised Guidance
We are happy to offer advice to any owner considering listing their property with Casa Marbella. If you would like to speak with one of our experienced professionals, or if you have any questions that aren't addressed here, we invite you to contact us directly.
Your peace of mind and a successful sale are our top priorities.
Ready to Sell Your Property?
Our team at Casa Marbella is here to guide you through every step of the sales process—from pricing strategy and legal compliance to completion and beyond. Let us help you achieve the best outcome for your property.