Before proceeding with the sale of a house, it is convenient to take the calculator to add all the expenses included in the operation and at the same time deduct them from what the potential buyer offers. That is to say, to the exit price of the property it will be necessary to subtract both the different taxes to be applied and the cost derived from the fees to third parties or the notary disbursements or by mortgage cancellation fees, among others. Next, we provide a breakdown of all charges arising from the sale and that must be taken into account to calculate the final profit from the disposal of a property.
Personal income tax
The seller must include the operation in the next income statement since if there is a capital gain It is considered as a taxable income. As reported by the Tax Agency, the gain will be determined by the difference between the transmission and acquisition values. The percentages vary depending on the profit tranche and range from 19% to 23%. Fernando Iglesias, a Tecnoca franchisee specifies that those who bought four years ago would sell today for “a lower price so there would be no such revaluation.”
However, there are cases in which taxpayers are exempt from paying this tax, although they must always include the operation in the declaration for the Treasury and mention the tax benefit they want to enjoy. Thus, it is excluded from paying in the personal income tax in cases in which the totality of the gain obtained from the transmission of what has been the habitual dwelling is reinvested in the purchase of a new habitual dwelling. Those over 65 years of age are not obliged to pay for this concept in the personal income tax as long as it is the usual home.
As you remember on the Helpmycash.com portal, this expense will be calculated based on the value of the land, not the purchase price. specifically, the cadastral value and the tenure period of the property with a maximum of 20 years are taken into account. Each City Council applies a different percentage, although it must never exceed 30%. «The City Council is liquidated during the 30 business days after the signing of the sale and it is this institution who calculates the percentage with some tables. It can range from 0 to 9,000 euros, ”says Iglesias.
It should not be paid in cases where the operation results in losses with respect to the original purchase value since the Constitutional declared that its application is unconstitutional in those cases in which there is no gain.However, the Supreme Court specified after the Taxpayer is obliged to prove that the sale meant a loss of assets.
Property Tax (IBI)
Even if the house is sold in the middle of the year, it must be paid by the person listed as the owner on January 1. “The house has to be transferred ‘free of charge’, that is, with all payments per day. Like the contribution (IBI, garbage and other taxes, etc.), which will be paid by the owner on January 1. That is, if a sale is signed on January 2, all tax taxes will be paid by the seller, recalls the Tecnocasa franchisee.
However, the law does not exempt agreements between the parties so that it is distributed from the moment of disposal or to put the expense in the final sale price.
Article 1,455 of the Civil Code states that “the costs of granting deeds will be borne by the seller, and those of the first copy and others after the sale will be borne by the buyer, unless otherwise agreed.” However, it is normally agreed in writing that these charges are paid by the homebuyer. All the expenses that come with the signing of the deed of sale cost around 700 euros, as indicated by the Tecnocasa franchisee, who adds that he has never seen «any seller pay these charges in Madrid».
For the mortgage cancellation
The mortgage cancellation expenses, in the event that you continue paying on credit the home for sale, include both the notary expenses for the public deed and the registration to record that the property is free of charges. Further, the bank can charge us a commission whose amount will depend on variables such as the date of signature, subrogation or novation of the loan, interest rate of the mortgage (fixed or variable) and the date on which we decide to repay it in advance, as you remember from the Bank of Spain. “Depending on the signed conditions, it would be necessary to face the early cancellation, which is usually 1% on the debt still pending, in addition to proceeding with the registration cancellation. The total can be around 1,000 euros, ”says Iglesias.
Real estate agency commission
Finally, it is convenient to discount the fees that will be paid to the agency in case we have made the sale through it. Transaction management costs are usually 3% (plus VAT) on the value of the property, but this percentage can reach up to 5%, they say on Helpmycash.com. This amount is not fixed by law and each real estate agent sets the commissions based on “the market dynamics itself”.