When we prepare to sell our residence or apartment, we usually do it with a purpose and preferably quickly. It may be that we no longer live in that home, that we need the money to buy another property or cover a financial need, or that we want to buy another house.
We trust that we can dispose of the amount obtained from the transaction. However, we must note that certain taxes must be deducted from that amount. Are you aware of what they are? Although it is true that the buyer must assume some tax responsibilities, it is important that you know that the seller must also comply with this, rendering accounts before the Tax Agency.
These are all the taxes that you will have to assume and pay if you sell your home.
Taxes if I sell my house: the municipal capital gains
The first of the taxes that the seller must assume when selling his property is the lien on the increase in value of urban land, although its technical name is Increase in Value of Urban Nature Land (IIVTNU). It is possible that one gets confused and does not know that he must pay it, but therein lies the first of your responsibilities if you manage to sell.
This tax taxes the increase in value experienced by the land during all the years in which it has been owned by you. That is, the revaluation that has occurred from its acquisition to its sale. The seller has up to 30 business days to make the payment of this tax and, in addition, whether there are profits or losses, they must include it in the following year's tax return. If there is no increase in value, but a decrease, the tax will not apply.
To calculate this tax, the following are taken into account:
- The annual rate of increase established by the town hall of the municipality where the dwelling is located.
- The cadastral value of the house.
- The number of years for which the home has been owned.
Personal income tax on the sale of a home
The next of the taxes that you will have to assume as a seller is the Personal Income Tax (IRPF). We have already mentioned that the sale of the apartment must be declared in the following year's tax return, as appropriate. In this case, the tax is applied if there is a positive difference between the sale price and the purchase price. Otherwise, the losses may be deductible in the declaration.
How is it calculated? It is done by subtracting the transfer value from the acquisition value, that is, the difference between the purchase price and the current sale price. However, to carry out the calculation with current values, a coefficient is applied that varies according to the year in which the home was purchased.
However, there are some cases in which it is not necessary to pay this tax. For example, if it is a reinvestment in a habitual residence and it is spent within a period of two years, on the part of the profit destined to the acquisition of a new home. If there is an unused part, it will be subject to taxation.
In addition, people over 65 years of age or in a situation of dependency who sell their home will not be subject to this tax, nor will those over 65 years of age who sell a home that is not their habitual residence.
The Property Tax (IBI)
The Property Tax (IBI) must be paid annually and must always be paid by the owner of the property, as of January 1. However, there is always the possibility of reaching an agreement with the buyer so that he assumes the proportional part.
Expenses that must be paid for the sale of a property
To the three taxes that we have indicated, we must add other expenses that the seller has to assume in whole or in part. They are the following:
- Notary and registration expenses: The disbursement of the deeds and any necessary modification later (taxes on documented legal acts for sellers) will be the responsibility of the seller.
- Mortgage cancellation expenses: If there is a mortgage loan in progress, it must be canceled or transferred to the new owner, who will assume the new debt. These costs must be paid both to the notary and to the financial entity.
- Expenses to transfer the property without encumbrances: If we want to sell the property free of encumbrances, as a seller we will have to face the pending expenses until January 1st. This includes special charges, garbage tax, energy efficiency certificate and real estate agency commissions.
As you can see, the sale operation entails additional costs. For this reason, it is essential to take them into account before signing any transaction.
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