Are you interested in selling a property in Mallorca or would you like support in selling your property? As real estate agents for upscale properties in the southwest of Mallorca, we know what there is to consider when selling property and what taxes are due. In the following we will be pleased to explain this to you.
Taxes to be paid when selling property in Mallorca
There are usually two types of taxes when selling property in Mallorca: The state profit tax and the capital gains tax.
- State profit tax (income tax on the capital gain)
The state profit tax is 19%. The tax is applied to the difference between the purchase price and the selling price. As soon as the notarial deed of sale is signed, 3% is already deducted from the purchase price for the buyer. This input tax (“Retención”) must be paid by the buyer to the Spanish tax authorities within 30 days on behalf of the non-resident seller. The seller can avoid paying the input tax by certifying to his notary’s office that he is fully liable to income tax in Spain. If the real estate sellers are married couples, they can submit a joint tax return since 1 January 2018. Under certain conditions (for example, if the sellers are 65 years old or older), the capital gain may be reduced.
Note: The real estate seller is obliged to submit a profit tax return within 4 months of the notarial sales date. Failure to do so is punishable as tax evasion.
- Municipal capital gains tax (commonly known as plusvalia or plusvalor)
This tax is used to tax the notional increase in value of urban land. The seller must notify the municipality of the sale of his property. The municipality calculates the amount of the tax individually. The calculation of the tax takes into account the value of the land, the duration of ownership and the (fictitious) increase in value of the property. As a rule, the real estate buyer cannot be entered in the land register before paying the tax.
Note: The longer the property has been owned by the seller, the higher the municipal increase in value. Therefore this tax can be quite high. It is advisable to calculate the amount of the tax before the property is sold to avoid expensive surprises afterwards.
Selling a property in Mallorca – what to consider
In addition to the taxes incurred, the seller should ensure that the property for sale is sold in the right context. This includes, on the one hand, that the property is sold at a price corresponding to the market. On the other hand, it should be noted that the property and the associated outdoor area as well as the inventory for the exposé pictures and all viewings that are part of the sale are tidy and clean. Especially in the high-priced real estate segment this should not be ignored. A real estate agent commissioned for the sale of the property will assist you with the above-mentioned points.
Real estate sales through exclusive concept as an estate agent
As an experienced real estate agent, we take the work out of selling property in Mallorca. Before the property is put up for tender, for example, we observe the respective property market, we determine the market value and the offer price. In addition, we support you in obtaining the necessary documents and prepare a meaningful exposé including high-resolution photos. During the sales phase we bundle incoming enquiries and coordinate the viewing appointments. By the way, your presence is not required during the viewings. We manage these independently and will answer any questions arising from interested parties.
In the last step of the sales phase, we lead the sales negotiations, prepare the purchase contract and accompany you to the notary appointment. The Exklusiv Konzept team will treat your property sale discreetly and seriously in every phase of the sale. Please do not hesitate to contact us. We look forward to supporting you in your real estate sale Mallorca.
Exklusiv Konzept S.L.
C./Isaac Peral 33
E – 07157 Pto. Andratx