About this guide
This is the latest information about the costs involved when selling property in or around Javea, on the Costa Blanca in Spain.
Tailored particularly for selling property in this area.
What’s covered in this sellers cost guide?
- Quick outline of selling costs
- Real estate agency commission
- Capital gains tax (CGT)
- Plusvalia land tax (municipal capital gain)
- Certificates & paperwork
- Update deed (Ampliacion de obra)
- Energy certificate CCE
- Habitation certificate
- IBI Municipal tax (Rates)
- More selling info
Quick outline of costs when selling property in Javea
To give you a quick calculation it’s between 5-10% off the price you accept, depending on your fiscal status.
This covers all your paperwork, tax retention (if you’re not a tax resident in Spain) and agent fee.
You may have a bit more to pay out, depending on how much capital gain you have but this can vary and you must ask your lawyer or fiscal rep to work it out for you.
Real estate agency commission
This amount can vary depending on the seller and the agent.
In the Javea area, it ranges from 3% to 7%. The most common amount charged to sell a home is 5%.
This percentage is non-inclusive of 21% IVA (value added tax) which is later tax deductible.
Capital gains tax (CGT)
It’s the difference between the values of acquisition (buying) and transmission (selling). In other words, if selling your property for a profit, you will be taxed on it.
Tax applied on profits from selling property or other assets
- First 6,000 euros profit is charged at 19%
- 6,000 – 50,000 euros profit is charged at 21%
- More than 50,000 profit is charged at 23%
Plusvalia land tax (municipal capital gain)
This tax is assigned to the municipalities and the tax rate will depend on the cadastral value of the land at the time of sale.
Also known as the tax of the increase in value of urban land. Paid whenever a property is sold, inherited, donated, swapped, auctioned or going through forced expropriation. The tax to be paid depends on which operation.
In Javea, whoever is selling (the land, even with a house on it) must pay the Plusvalia. Land values taken from your local rates bill (IBI), along with the number of years ownership generate a coefficient applied on the value of land which can vary between towns.
Coefficients don’t usually exceed these limits:
1-5 years period – 3,2%
Period up to 10 years – 3,5%
Period up to 15 years – 3,2%
Period up to 20 years – 3%
The type of lien: will be the one set by each city council, without being able to go over 30%.
Certificates & paperwork
It’s a good idea, if not the best idea, to get all the paperwork for your property in correct order!
When selling property in Javea, there are certain documents you will need to provide the buyer’s lawyer and possibly the bank if a mortgage is needed.
We can help get you get your paperwork in order and to organise any documents you may be missing! Call now for a quick chat on +966461643 if in doubt.
Update deed (Ampliacion de obra)
Prior to 2007, it wasn’t necessary to have every square meter or pool reflected on paperwork. It was quite normal to buy and sell property in Javea without the description of the property matching 100% what was built.
It was just how it was.
But after the Spanish real estate bubble burst, it became more common practice to declare any changes in the form of home extensions, pools, out-houses, covered terraces etc.
If the description of your property needs updating in your property deed (escritura), you will need an architects certificate. This is presented to the notary and he updates the information as per the architects certificate. The new deed, now called a deed of “Ampliacion de obra" is presented to the land registry where details of the property are updated officially.
If selling your property in Javea: get your deed (escritura) updated if needed.
If you have funds, get it done sooner rather than later, because if a potential buyer needs a mortgage or part mortgage, the bank will expect to receive a deed that reflects the property correctly before thinking about lending money to anyone!
Energy certificate CCE
Unless you purchased after June 2013, you will need an energy certificate to show the energy efficiency of your home. This certificate should be officially registered and are valid for a period of 10 years. Let us know if you want us to get this for you.
A habitation certificate, locally known as the “cedula" or “certificado de habitabilidad" is a document provided by Javea town hall as long as your property meets certain building regulations and has not breached any building rules or licences.
The habitation certificate is obtained via a qualified person who visits the property and fills out the DROC/2 form provided by Javea town hall. There are two types of habitation certificates: for first and second occupancy, the first being for new build property and second for resale property.
In recent years, it has become necessary to provide this document when selling property in Javea. It it valid for 10 years. Also, if a potential buyer needs a mortgage or part mortgage, the bank will expect to receive a copy of the habitation certificate and won’t finance any purchase until it’s provided.
We can help to arrange this for you so, just ask!
IBI Municipal tax (Rates)
The municipal tax, otherwise known as the IBI (Impuesto sobre Bienes Inmuebles) for a calendar year, will be split and paid by both parties, buyer and seller, for the months of ownership of each.
You will be asked to provide the agency and potential buyer with a copy of the most recent IBI payment when selling your home in Javea. If there is any backlog of unpaid IBI bills, you will have to settle them, paying any penalisation fee on top.