What expenses the seller must face when he decides to sell his home, is the first question that our customers make. In Inmo Personal Services We carry out a study of the situation of the House and clarify his doubts about it.
We'll detail the main expenses
1. State surplus or equity gain
Fiscally the sale of a property has the consideration of a profit or loss of property in the income, depending on whether or not profits are obtained for the operation with respect to the original pricing when purchased.
The profits and losses obtained by the transfer of real estate are added to the tax base of the savings when the housing has remained more than one year in the power of the taxpayer. In this way, taxes would only be paid in the event of a wealth gain, i.e. a profit for the sale.
In this way, if the sale of a house is made for a lower price than the purchase, there would be no equity profit, and therefore would not be taxed in the income tax.
What are the exemptions to the payment of income tax when selling the house?
There are a number of assumptions where profits are exempt. are as follows:
Reinvestment in habitual housing:
You can exempt the payment in full if it is reinvested in the purchase of another house. A number of requirements must be fulfilled:
- That the house sold is the usual of the owners and their family group.
- That the profits are destined to the purchase of another habitual house. If only a percentage of the earnings are allocated to reinvestment, the remainder must be taxed in the manner described above.
- That the purchase of the new habitual house is made within a maximum period of two years from the sale.
b) over 65 years: in the transmission any type of real estate not only the usual, by people over 65 years nor will have to pay taxes for selling the house, as long as the money obtained is destined to create a life insurance insured In the six months after the transmission.
c) Payment: A payment is basically to sell your home to the bank for the price you have left mortgage. In this way, the financial institution stays with the house and the debt. In this case you can also present a profit, because you are conducting a transmission, but a reform was approved to be exempt from taxation in the income tax. This will apply to foreclosures.
2. Municipal Surplus
The tax on the increase of value of the land of urban nature, known popularly as "municipal capital gains", is a direct tribute that taxes the increase of value that experience the urban land and it is shown as a consequence of the Transfer of property of the land by any title (purchase, inheritance, donation…) or the Constitution or transmission of any real right of enjoyment, limiting the domain, on the aforementioned grounds.
In order to determine the amount of this "real increase", it will apply on the value of the land (not that of the construction) at the time of the sale a "percentage", whose maximums and minimums fixed the law, corresponding to the municipalities to establish the percentage and final type.
for calculating the municipal capital gains, the value of the land that is taken as a reference is the cadastral value, which you can check on any receipt of IBI or contribution, and that is updated each year.
Who pays for municipal capital gains?
The payment of this tax can always be negotiated who pays it, but the law marks that those obliged to pay the tax of municipal capital gains are the following subjects:
- In case of sale of a plot, floor, house, garage or other urban property: the seller.
- And the case acquisition by inheritance or donation: the purchaser.
3. Mortgage cancellation Fees
If you are still paying the mortgage loan, you have to deal with the early termination of the mortgage.
In variable-interest mortgage loans, this Commission is limited to a maximum of 1%, when the cancellation of the loan is not a consequence of a subrogation from another entity.
On the other hand, in addition to the economic cancellation, registration must also be cancelled. This implies making a deed of cancellation of the mortgage in the notary, which subsequently must be taken to the property registry to eliminate that burden on the house. The amount of this registry cancellation varies according to the autonomous community and the notary.
4. Buy-Sell Writing
It can be negotiated, and almost always paid in full by the buyer, but under the law, the costs of granting public deeds are the account of the seller, and those of first copy and other post-sale of the buyer's account.
The costs of issuing public deeds are to be understood as those relating to the writing matrix, which is the highest cost.
5. Mortgage Cancellation management expenses
This costs only occurs in the event that to make the sale of the property has to cancel a mortgage. The procedure of the cancellation in the registry of the property can be made by the seller on his own, with the consequent saving, or it can make a specialized agency or the own notary, which will charge for it.
But if the buyer of the house finances the purchase with a financial institution, it will be the management of that entity that is mandatory to carry out this process, because it must ensure that you really delete your mortgage to register the new.
6. Energy Certificate
Since the entry into force of Royal Decree 235/2013, of 5 April, approving the basic procedure for the certification of the energy efficiency of buildings, it is obligatory to make a contract of sale of housing dispose of the corresponding energy efficiency certificate.
The seller is obliged to apply for the certificate, because if a contract of sale was made without the aforementioned certificate the notary will not give the approval. The approximate cost of carrying out the energy certificate is usually 100 euros.
7. Certificate of being aware of the community
You will need a certificate to be aware of the community. It is usually done for free, but if you owe some fees you must pay them before signing the deed, as this certificate is requested by the notary.
The receipt of IBI or contribution corresponds to pay it to the one who on January 1 owns the property, ie, it always pays to pay the seller.
9. Real Estate expenses
If you sell your house through a real estate agent, which is always recommended to avoid last minute problems by not having all the documentation in conditions.
The usual thing is that the Commission on the sales value is 5% plus the corresponding VAT.