Taxes for non-residents when selling a house on the Costa Blanca

Selling a home on the beautiful Costa Blanca can be an exciting experience, whether you are looking for a change of residence, an investment or simply want to get rid of a property. However, before finalizing the sale, it is important to understand the tax implications that non-residents should be aware of. In this blog post, Villas Buigues, the prestigious real estate agency in Moraira on the Costa Blanca, will guide you through the taxes you should consider when selling a property as a non-resident.

Non-Resident Income Tax (IRNR)

The first tax you should take into account is the Non-Resident Income Tax (IRNR). This tax applies to non-residents who earn income in Spain, such as the sale of a property. The tax rate applied is 19% on the profit obtained from the sale. It is important to bear in mind that the buyer will retain 3% of the sale price as an advance of the IRNR, which must be paid to the Tax Agency.

Municipal Capital Gain

In addition to the IRNR, as a non-resident seller you will also be subject to the Municipal Capital Gains Tax. This tax is based on the increase in the value of the land from acquisition to sale. The exact amount will depend on factors such as the location and tenure time of the property, for example, selling one of the villas for sale in Moraira will be different from buying a house in Pego, therefore it will have to be taken into account. Generally, this tax is borne by the seller, and it is important to take it into account when calculating the costs associated with the sale of your property. 

Local taxes and other expenses

In addition to the taxes mentioned above, you should take into account other expenses associated with selling a property on the Costa Blanca. These can include notary fees, attorneys' fees, real estate agency commissions, and mortgage cancellation fees, if any. It is essential to make an accurate calculation of all these expenses to avoid unpleasant surprises during the sales process.

Tax exemptions and international agreements

It is important to note that there are certain tax exemptions and international agreements that could affect the taxes you must pay as a non-resident when selling a property on the Costa Blanca. These agreements may vary depending on your country of residence, so it is advisable to seek professional advice to fully understand your tax obligations and rights.

Selling a house on the Costa Blanca as a non-resident involves carefully considering the taxes and expenses associated with the transaction. Non-Resident Income Tax, Municipal Capital Gains and other expenses must be taken into account when calculating the total costs of the sale. Consulting with tax experts and having the support of a reliable real estate agency, such as Villas Buigues, can help you navigate this process efficiently and ensure you meet all your tax obligations. Contact us today and we will guide you in the successful sale of your property on the beautiful Costa Blanca!

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