Capital Gains Tax

 Assuming you are non-residents, yes, the buyer will have to retain 3%. You can claim this back (although it may take a while) if there has been no gain - I think you use form 210, but you can check with whoever does your regular returns for you. 

The local tax you refer to is called Plus Valia. You can find out the exact amount that will be due by going to your local town hall and asking.

You will aslo be liable for the IBI (rates) for this calendar year, even if you sell before the bill is due. If your property is part of a community, you will need to obtain a letter from the administrator stating that all your community fees are paid up to date.

 Surely just CGT by another name, Plus Valia could come as a nasty surprise to some when selling. Another nail in the coffin of the Spanish property market. It's almost as if the powers that be actually want to kill it off.

http://www.euroweeklynews.com/features/your-sa/item/112886-crippling-tax-to-sell-your-own-home

I'm not one to normally believe stuff I read in the papers either, but it's quite clear that the author is aware of what plus valia is: " This punitive tax on the sale of properties in Benalmadena is due to the ridiculously high valuation of land by the council in 2007". The reference to the tax being around 30% of what he paid for the property 23 years ago was presumably just as a point of interest and comparison. I'm quite prepared to believe there may be an error and/or and exaggeration in the reporting, but many town halls have revised their valor catastrals in recent years, and my reason for posting this was purely to let people know that they may be in for a shock when selling. 

You can find out at any time how much plus valia you would be liable for, by simply asking at your local town hall.

Roberto

I am a bit unclear on what this means

Any idea if it lends weight to the letter writer ?

http://www.foro-ciudad.com/malaga/benalmadena/documento-21035.html

 If you follow the link provided there to calculate your plus valia and enter your own info, it will become clear. This is the link

On my property in Torremolinos, bought in 2004, my plus valia would be around €4,000. Certainly not anywhere near 30% of what I paid of course, but nevertheless a bit of a kick in the teeth when one doesn't expect to pay capital gains tax (which is what it is in effect) on the sale of your own home. There are no exemptions for plus valia, and it has to be paid within 30 days of the sale.

I think the author of the article may have been quoting the valor catastral, or maybe the base imponible, rather than the tax due, but at best that could still result in a tax of almost €8,000. 

As I said before, I'm quite sure there are many who have never counted on this. And since these days EOS is as much about selling as buying, I thought it was an interesting subject to highlight. 

Johnx-how did you get the buyer to pay the plus valia, when it is standard practice for the seller to pay it?

 Not sure I understand what you're asking. What sounded odd to you?

You do realise that we're discussing two seperate taxes? The buyer only holds back 3% of the total sale price if the seller is a non-resident. This is in lieu of any potential capital gains tax the seller is liable for. The buyer pays this 3% to Hacienda. The seller then either claims it back if no CGT is due (or if the 3% was too much), or he pays the balance of any CGT due to Hacienda himself.

The Plus Valia tax is paid, normally by the seller, to the town hall. If a prior agreement has been made, the buyer may pay it. Often, developers selling new properties will try to get the buyer to pay it. But this is not the normally accepted practice.

It's a considerable amount when you've lived in it for 10 years or more! on top of all the other expenses agents fees etc selling is a very expensive business.

"selling is a very expensive business."  As is buying.

I have just done a very rough calculation, and reckon that if I sold today for the exact same price I paid 9 years ago, (which is wishful thinking) I would be about 20% down. This is taking into consideration the costs of buying, the plus valia, the agents fee, and CGT if I declare the true sale price (which stupidly I didn't when I bought, along with about 100% of everyone else)

Except from during an unprecendented property boom, which doesn't come around too often, buying property in Spain makes little sense from an investment point of view - and there is a good reason why Spaniards tend not to move home too frequently. If the government woke up to this fact, things might look a little more promising for the property market than they do at present.

 Well I think the original poster is non-resident, so this wouldn't apply anyway. The 3% will be retained, and he/she may then have a long battle convincing Hacienda that the property was sold at a loss, and even if they accept that, it could be over a year before they see this money. 

Plus Valia is not a secret, true, but many (and no doubt especially non-resident) owners are blissfully unaware of it - until they come to sell. So it can come as a nasty surprise, on top of all the other costs involved.

When I bought a property in the UK in about 1963 I was surprised to learn that I had to pay Stamp Duty as the purchase price was above the free amount, I believe then £4,500.  It was about £50 over so had to pay on the lot.   

That I did not know was my fault. 

The Plus Valir is still I beleive a very small part of the cost of selling, and is a normal tax throughout Spain.

 Well, 4 grand is no small amount to me, regardless of what you compare it to, but for the sake of letting you have the last word - I AGREE WITH YOU. OK?