It is a tax that by law corresponds to the seller, but when the seller of the property does not reside in Spain, the purchaser (buyer) of the property becomes a substitute that is responsible for this payment. Each local council has the power to regulate its own tax rates within a scale by municipal ordinances. For the calculation, the following variables are taken into account:
– Cadastral value of the land
– Number of years that the property has been in the owner’s possession until its sale (the more years the tax has been paid, the higher the rate)
Although the Municipal Capital Gain is not required in cases of property transfers where a loss is generated (the rule was declared unconstitutional) [TC 11-05-2017] . Rosana Tejada, tax advisor at Tejada Solicitors, recommends that, even if a loss exists, the transfer of the property should be notified to the Town Hall. If, later on, losses exist and the Town Hall notifies the tax assessment, we recommend that you appeal against this payment settlement to the Town Hall.
Once the property has been sold, the seller has 30 days to pay the tax or to present the corresponding notification of the transfer made to the local council. The council will notify the resident seller or buyer (if the buyer becomes the substitute for the non-resident seller) with a letter of payment of the projected amount.
Estate Agent’s Fee
From our experience, we recommend choosing a real estate agency in the area where the property set to be for sale is located. This is a very valid way of advising us on the market price of the property, as the real estate agency will usually have records of other similar properties that exist in the same area.
The fees of the real estate agents will depend on the area where the property is located. They can vary between 3% and 10% on the sale price of your property. Usually, this is an expense that the seller must deal with.
We recommend that the real estate agent’s fees are paid at the end of the purchase process and never before signing the deed.
Energy Efficiency Certificate
From the 1st of June 2013, any owner who intends to sell or rent his property, needs to obtain an energy efficiency certificate which is valid for 10 years.
The energy efficiency certificate is a report issued by a competent technician, which describes the efficiency of a house in terms of energy consumption and level of CO2 emissions. The efficiency rating ranges from most efficient energy rating, “A” to least, “G”.
The average cost of an Energy Efficiency Certificate is €165 (this can vary from €95 – €525), dependent on location and the technician.