If you are planning on selling property in Nerja or elsewhere in Spain, it is essential to understand the full costs involved. Many sellers focus only on the sale price, but there are several taxes and expenses that can affect your final net proceeds.
The total cost of selling a property in Spain depends on your personal circumstances, residency status, how long you have owned the property, and whether it is your main residence or a second home.
Below is a complete breakdown of the main selling costs in Spain and how they can vary.
Capital Gains Tax is one of the most significant costs when selling property in Spain.
Capital Gains Tax is payable on the profit made from selling your property. It is generally calculated as:
The remaining amount is your taxable gain.
If you are a non-resident selling property in Spain, the buyer is legally required to retain 3 percent of the sale price and pay it directly to the Spanish tax authorities.
This is not an additional tax; it is an advance payment toward your Capital Gains Tax liability. After your final tax calculation is completed, you may receive a refund if the amount withheld exceeds your liability, or you may need to pay the difference. Understanding this in advance ensures you can plan your net proceeds accurately and avoid surprises at completion.
Capital Gains Tax may be reduced or exempt if:
Your personal circumstances can significantly affect the final amount payable.
Plusvalía is a local council tax payable by the seller. It is based on the increase in the cadastral land value during your period of ownership, not the actual sale price.
The amount depends on:
Recent legal changes allow this tax to be reduced or challenged if the property has not increased in value. The final amount varies depending on length of ownership and local regulations.
In Spain, estate agency fees are usually paid by the seller.
Fees typically range between 3 percent and 6 percent plus VAT, depending on:
At Nerja Properties, our fee is clearly agreed in advance, ensuring complete transparency from the outset.
Although not legally required, most sellers choose to instruct a lawyer to manage the transaction. Legal fees are commonly around 1 percent to 1.5 percent of the sale price, or a fixed agreed fee.
A lawyer will typically:
Tip: Granting Power of Attorney to your lawyer can make the process much easier, particularly if you cannot attend completion in person. However, this will carry additional notary and legal costs, which should be factored into your budget.
By working with a lawyer, you can ensure the sale is legally secure, taxes are correctly calculated, and the transfer process is smooth from start to finish.
If there is an existing mortgage, additional costs may include:
Even if the mortgage has already been repaid, it must be officially removed from the Land Registry, which carries a cost.
Other costs to consider when selling property in Nerja include:
All outstanding amounts must be settled before or at completion.
As a general guideline, sellers often budget between 5 percent and 15 percent of the sale price. However, this can vary considerably depending on:
In some cases, particularly where little profit has been made, the overall cost may be significantly lower.
Because every seller’s situation is different, it is important to obtain professional advice before listing your property.
At Nerja Properties, we guide you through every stage of the selling process. We can put you in contact with a trusted local lawyer who will calculate your expected taxes, explain the 3 percent retention, and provide clarity on your specific obligations.
Understanding the true costs of selling property in Nerja allows you to plan ahead and move forward with confidence.
