Although ownership transfers on completion day, sellers often have further legal and tax obligations that should not be overlooked.
Understanding these obligations in advance helps avoid unnecessary penalties and ensures that the sale is fully completed from both a legal and tax perspective.
What Happens After You Sell?
01
Capital Gains Tax
If you make a profit on the sale of your property, you may be liable for Spanish Capital Gains Tax.
The amount payable depends on several factors, including your tax residency, the purchase and sale prices, the length of ownership and certain deductible expenses.
Before the sale takes place, we can estimate your potential tax liability so you know what to expect.
02
Plusvalía Tax
The Plusvalía Tax is a local municipal tax based on the increase in the cadastral value of the land during the period you owned the property.
In most cases, this tax is payable by the seller and is separate from Capital Gains Tax.
Our team can calculate the amount due and arrange its submission to the relevant Town Hall.
03
Non-Resident Sellers
If you are not tax resident in Spain, the buyer is generally required to retain 3% of the purchase price and pay it directly to the Spanish Tax Authorities.
This amount is withheld on account of your potential Capital Gains Tax liability.
Depending on the final tax calculation, you may need to pay additional tax or you may be entitled to claim a refund of part of the retained amount.
We can prepare the necessary tax declarations and assist you with any refund application where applicable.
04
We Continue Supporting You After the Sale
Selling a property often marks the end of one stage, but there may still be administrative matters to resolve.
Our team can continue assisting you with any outstanding tax procedures, correspondence with the authorities and any legal matters arising after completion, ensuring that your sale has been fully concluded.
If you intend to remain connected to Spain through other property or investments, we can also advise you on your continuing legal and tax obligations.
Thinking of Selling Your Property?
Whether you are planning to sell now or simply considering your options, obtaining legal advice at an early stage can help you understand the process, anticipate the costs and avoid unnecessary complications.
Contact MAM Solicitors for personalised advice and let us guide you through every stage of your property sale.
Clear Advice. Smooth Transactions. Peace of Mind.
