Wednesday, July 13, 2022

The sale of a property and its expenses.

Due to Covid-19, and as a result of the months of confinement, many people decided to leave the apartments they had in the city and look for a property far from the cities, in more airy and relaxed places.
Two years have passed but this trend is still continuing at the real estate level. Many people plan to start this process of buying and selling, but all the taxes and expenses that this implies should be taken into account before getting rid of their houses.

Expenses prior to the sale of your property

Before putting a property up for sale, it is important to take into account the documentation. The costs of this documentation below:

Energy certificate
It is necessary to have an energy certificate for the property to put it up for sale. This certificate reports the consumption of the property, classifying the level of energy efficiency.
A professional technician is responsible for obtaining this document. The energy certificate costs approximately 120 euros.

Certificate of occupancy
To sell a property in some Autonomous Communities of Spain, it is important to have the habitability cell. This document is the one that is responsible for confirming whether the property meets all the minimum security requirements.
To obtain this certificate, a professional technician is not necessary, and the price varies depending on each rate of each municipality as well as the property itself. Even so, the approximate price is between 80 and 120 euros. To acquire this certificate it is necessary to hire a professional technician.

Simple note
The simple note of the property is a document that has the information if that property is free of charges. The document can be requested by both the seller and the buyer, so it is recommended to have it.
The simple note costs about 9 euros and is obtained by entering the website of the Association of Registrars.

Mortgage cancellation expenses
If the property you want to sell has a mortgage, this expense has to be paid. As selling a house with charges is not possible, it has to be paid preventively.
The cost of this procedure depends on who does it, about 400 euros if it is done on your own, and about 480-500 euros if you consult an independent agency.
 
Expenses when selling the house

These are the three expenses to be able to close a sale once a buyer has been found for your property:
 
Earnest money contract
Completing this document is not mandatory, but it is highly recommended. When signing the contract of sale, the buyer can always go back, and this document protects both parties.
This, obtains all the agreements agreed between both parties.
This document depends on whether it is done by a buyer, a seller or a lawyer. If it is in a real estate agency, the price will depend on the commission of the sale, but if it is done by a lawyer, the price would be around 100 euros.

Notary fees

The buyer is the one who usually pays the expenses of the notary, which includes those of the public deed and the notary's fees. The cost of notary fees depends on the price of the property.

Real estate commission

If a real estate agency is responsible for the sale of your property, you will have to pay the fees for the service, which is usually between 3% and 7% of the sale, although it depends entirely on the property. If you access an online real estate, the price can vary between 1,000 and 5,000 euros.

Taxes for the sale of the house

When the property is sold, taxes will have to be paid to the Tax Agency, that is, personal income tax.
Personal income tax must only be paid with the sale of your home if it has been sold at a price higher than what you paid for the property at the time. It is paid one year after the sale of the property.
To calculate income tax, you have to know the price at which you sold the property, the price at which you bought it and the expenses you paid to carry out all these operations.

Exceptions:
• Having sold the primary residence and being over 65 years of age.
• The money from the sale, invest it in the sale of a new property.
• Giving the flat in dation of payment for not being able to face the mortgage.
• That the purchase of the property took place between 05/12/2012 and 12/31/2012. In that case, 50% of the capital gain obtained is exempt.

Municipal capital gain

Before 30 days have elapsed since the sale of the home, the city council must be paid for the increase in residential value. It does not mark the price of the sale, but the increase in the value of the land. To calculate it, you have to know the cadastral value of the land, the years of ownership of the home and the coefficient and percentage set by the city council.

Real Estate Tax (IBI)
It must be paid annually for owning the property. Although it is not linked to the sale of the house itself, it must be collected in the same way in the same year of the sale.