what is position on tax when you sell

I hear many different stories about when you sell and what tax is withheld and what charges you will pay, can anyone give me the definitive answer to this, i have my apartment up for sale (no luck yet)  and i would like to know what to expect.

Capital gains tax payable @18% if it's not your main residence and you are not re-investing the proceeds. Payable on the difference between (declared) purchase price and selling price. If non-resident, 3% of selling price will be retained upon signing, in lieu of CGT - can be reclaimed if none due.

Plus Valia, similar to CGT but based on the increase in the land value (valor catastral, which can be found on your IBI, or rates, bill) in the time you have owned the property - payable to your local town hall. Usually a fairly small amount.

Mine is up too but it may be that we will only get back what we paid for it if we want to sell more quickly.

 Do I assume therefore that no CGT will be payable in that scenario?

There will be solicitors charges (1%?) plus Estate Agency charges (5-7.5%?) assuming you dont do it all yourself.

No need for a solicitor if you have the time and inclination to be in Spain to deal with the sale; estate agent's fee should be no more than 5%, if they want more, go elsewhere.

 I would advise to use an independent solicitor for the sale. With all my respect for different opinions, a clean, liabilities free sale is better conducted with the help of a lawyer.

Best,

Maria

I also have absolute respect for different opinions, especially professional ones! If you are unfamiliar with the sale process, have limited grasp of Spanish or are simply nervous of the whole thing (understandable), I think Maria's advice is spot on. I'm not sure, but I think a fixed fee should be agreed for this service rather than the 1% of the sale mentioned previously, which is the figure usually quoted for the buyer's legal fees; generally speaking, the onus is on the buyer to ensure there are no liabilities etc., and the seller's representative doesn't really have too much to do other than ensure you get paid (!!!) and then make sure the Plus Valia is paid (actually very easy to do yourself), and handle any subsequent CGT liability. You may want someone to ensure that all the utilities etc., are transferred correctly to the new owner, but if there is an estate agent invloved, they will usually deal with all this as part of their service.

So the 3% retention tax is only taken from non residents?  What if someone has a residencia certificate but  is not in the Spanish tax system. What are they classified as in relation to this tax retention?

You must be a fiscal resident, i.e. a tax payer in Spain; you need a certificate from Hacienda (tax dept.) stating as much in order to avoid the retention.

Thought so. Thanks for the confirmation. Must tell my friends who although they have lived here are for a few years do not fiscal residency.