Costs and taxes when selling a home in the Valencian Community

Before putting a price on your home, there’s one question it’s worth answering clearly: how much will you really be left with after you sell? Because between taxes, certificates, fees, and possible cancellation of charges, the difference between the agreed price and what ends up in your account can be significant.

This guide is designed so that any seller—resident or non-resident, individual or heir—can understand in advance what expenses and taxes are involved in selling a home in the Comunitat Valenciana. No last-minute surprises, and plenty of time to plan properly.

💡  Golden rule: before accepting an offer, calculate your selling costs. Only then can you negotiate with confidence and know exactly how much money will really be yours once the deal is signed.

1. IBI and rubbish collection fees: municipal receipts

The IBI (Property Tax) is the annual municipal tax paid by the person listed as the owner on 1 January of each year. The rubbish collection fee (or waste fee) is another municipal charge paid by most town halls, and it may also be outstanding at the time of the sale.

In Dénia and many municipalities in the Marina Alta, the body responsible for managing and collecting these taxes is SUMA Gestión Tributaria. The notary will usually request information from SUMA about any potential outstanding debts before the signing.

In practice, the most common arrangement is for the buyer and seller to agree on the prorating of the IBI and the rubbish collection fee: each party assumes the proportional amount for the days of the year during which they owned the property. If the sale is signed in July, the seller assumes approximately half of the annual bill and the buyer the other half.

💡  Include the IBI proration agreement in the deposit contract (contrato de arras). You’ll avoid misunderstandings, and everything will be clear from the start.

2. Municipal capital gains tax (plusvalía municipal): the town-hall tax on the land

“Plusvalía municipal” is the usual name for the Tax on the Increase in Value of Urban Land. It is charged by the town hall and, in a property sale, it is paid by the seller. It taxes the increase in value of the urban land from the time you bought the home until you sell it.

The amount depends on several factors: the cadastral value of the land, the number of years that have passed since the purchase, the municipality’s tax ordinance (ordenanza fiscal), and the calculation method applied. There are two methods:

•      Objective method: applies certain coefficients to the cadastral value of the land based on the number of years that have passed since the purchase.

•      Direct or “real” method: takes into account the actual gain obtained. If the result is more favorable to the seller, they may choose this method.

⚠️  If you sell for less than the price you paid—that is, at a loss—you may not have to pay municipal capital gains tax (plusvalía municipal). It’s a point worth checking with an advisor before assuming it’s always paid.

To get an initial idea of the amount, SUMA Gestión Tributaria’s website has a calculation simulator: https://www.suma.es/cuerpo_calc_imp.xhtml

3. IRPF: capital gain tax on the sale

When you sell a home as a tax resident in Spain, you must declare in your annual IRPF (Personal Income Tax) the capital gain or loss you have made. Simply put: you compare the sale value with the acquisition value.

But the calculation isn’t as straightforward as subtracting one price from the other. Other items can affect it too: the expenses and taxes you paid when you bought, any improvements you’ve made to the home, and any depreciation if the property was rented. That’s why it’s always recommended that a tax advisor calculate it using the real details of your transaction.

The capital gain is taxed under the IRPF savings base, at progressive rates by bracket:

•      Up to €6,000: 19%

•      €6,000 to €50,000: 21%

•      €50,000 to €200,000: 23%

•      €200,000 to €300,000: 27%

•      Over €300,000: 30%

These percentages are applied by bracket, not across the entire gain starting from the first euro. And there are situations where the gain may be fully or partially exempt:

•      Sale of a primary residence with reinvestment into another primary residence, meeting the legal requirements and deadlines.

•      Sale of a primary residence by people over 65.

•      Certain situations of severe dependency or “great dependency”.

⚠️  Don’t confuse municipal capital gains tax (plusvalía municipal) with IRPF. They are two completely different taxes: plusvalía is managed by the town hall and focuses on the value of the land. IRPF is managed by the Tax Agency (Agencia Tributaria) and looks at the overall gain from the transaction. Depending on your situation, you may have to pay both—or only one.

4. Real estate agency fees

If you sell through a real estate agency, the fees for the brokerage service are one of the costs you need to plan for. There is no single mandatory rate—each agency has its own terms.

What matters is that before signing any sales engagement, everything is clearly stated in writing: the amount or percentage agreed, whether it includes VAT, when it is paid, and which services are included. A reputable agency will have no problem laying it all out from the beginning.

5. Energy efficiency certificate

Since 2013, it has been mandatory to have a registered energy efficiency certificate in the Comunitat Valenciana in order to sell a home. It’s not an optional formality or something you can leave until the day of signing—it must be available from the moment you announce or advertise the property.

It is issued by a competent professional (architect, engineer, or authorized technician), and its cost varies depending on the size and characteristics of the home. If your certificate has expired or you’ve never processed one, this is one of the first steps you should take before putting the property on the market.

6. Certificate from the owners’ community

If the home belongs to an owners’ community (community of property owners), the seller must provide a certificate at the notary signing proving that they are up to date with payments to the community. It is usually issued by the administrator or secretary of the community and may have a cost.

Beyond the payment certificate, it’s also wise to check whether any levies (derrama) have been approved or are expected before the sale. A significant levy that hasn’t been communicated to the buyer can lead to problems after the signing.

7. Mortgage cancellation: two steps that aren’t the same

If your home has a mortgage and you’re going to sell it free of charges, you need to do two different things that many people confuse:

•      Cancel the financial debt with the bank: pay off the outstanding principal, with any possible early repayment fee if it’s included in the loan deed.

•      Cancel the registered charge: process the formal cancellation of the mortgage at the notary and with the Land Registry (Registro de la Propiedad) so that it disappears from the records.

⚠️  Finishing repayment of the loan doesn’t mean the mortgage has disappeared from the Land Registry. If you haven’t processed the registered cancellation, the mortgage will continue to appear as a charge on your property. This can block or complicate the sale if it isn’t detected in time.

The costs of registered cancellation include the notarial deed of cancellation, registration with the Land Registry, and, where applicable, the gestoría that handles the process. These are costs borne by the seller.

8. Other costs that may come up

Depending on your home’s characteristics and the specific transaction, other costs may arise that you should review in advance:

•      Technical or urban-planning documentation: declaration of second occupancy (declaración responsable de segunda ocupación), habitability certificate (cédula de habitabilidad), urban certificates, or licenses if required for the home.

•      Settlement of any outstanding utilities: electricity, water, or gas bills with unpaid debts.

•      Notary or registry costs that the seller assumes by agreement with the buyer.

•      Tax or legal advice: especially recommended for transactions with significant tax implications or complex situations such as inheritances, divorces, or sales involving non-residents.

💡  Not all of these costs arise in every transaction, but it’s worth reviewing them before you set the sale price. Discovering an unexpected expense after you’ve accepted an offer can complicate negotiations.

9. If the seller is a non-resident: the 3% withholding

This point affects all property owners who are not tax residents in Spain—regardless of their nationality. If you sell a home in Spain as a non-resident, the buyer is legally required to withhold 3% of the sale price and pay it into the Tax Agency (Agencia Tributaria) using Form 211.

This withholding is not an additional cost for the buyer—it’s an amount directly deducted from the price you receive. It works as a payment on account of your Non-Resident Income Tax (IRNR).

A concrete example: if the sale price is €300,000 and you are a non-resident, the buyer will withhold €9,000 and pay that amount to the tax authorities. You will receive €291,000 at the time of signing, without prejudice to the tax settlement that may apply to you later based on your actual gain.

⚠️  This point must be prepared in advance because it directly affects the amount you’ll receive at the notary. If you don’t take it into account when negotiating the price, it can be an unpleasant surprise on signing day.

Also, if you don’t speak Spanish well, you need to arrange for a translator or interpreter so you can correctly understand the documents you sign. And if you’ll have tax obligations after the sale in Spain, having a tax representative or an advisor specialized in non-residents is strongly recommended.

10. Summary: what you should calculate before accepting an offer

Before saying yes to an offer, prepare a realistic estimate using these items:

•      Estimated sale price.

•      Outstanding mortgage balance and possible cancellation fees.

•      Estimated municipal capital gains tax (plusvalía municipal) (you can use SUMA’s simulator).

•      Estimated IRPF capital gain and any possible exemptions that may apply.

•      Outstanding or proration-eligible IBI and rubbish collection fee.

•      Agency fees, with VAT if applicable.

•      Energy efficiency certificate, if it isn’t valid.

•      Owners’ community certificate and any approved levies (derramas).

•      Mortgage registered-cancellation costs, if applicable.

•      3% withholding if you are a non-resident.

•      Other technical, urban-planning, or advisory costs depending on the case.

With this information on the table, you’ll know exactly how much money will remain after the transaction, and you’ll be able to negotiate with much more security and sound judgment.

At COSBA, we support our sellers from day one: assessing the property, preparing the documentation, arranging viewings, and accompanying you all the way through to signing at the notary. If you’re thinking of selling your home in Dénia or the Marina Alta, talk to us without obligation.

This guide is for general information only and may contain errors, omissions, or become outdated due to regulatory changes or the specific circumstances of each transaction. For any decision with tax or legal implications, always consult a qualified professional.

Frequently asked questions about costs when selling a home in the Comunitat Valenciana

How much does it cost to sell a home in the Comunitat Valenciana?

There isn’t a fixed percentage because it depends on many factors: whether you have a mortgage outstanding, how long you’ve been the owner, whether it’s your primary residence, whether you’re a resident or non-resident, and whether you use a real estate agency. The biggest costs are usually municipal capital gains tax (plusvalía municipal), the IRPF capital gain tax, and agency fees. Calculate everything before accepting an offer.

Who pays municipal capital gains tax, the buyer or the seller?

In a standard sale, municipal capital gains tax is paid by the seller. It’s a municipal tax that taxes the increase in value of urban land from the time of purchase until the sale.

Do I have to pay municipal capital gains tax if I sell at a loss?

If you sell for less than the price you paid, you may not be required to pay municipal capital gains tax. The regulations allow you to prove that no actual increase in value has occurred by providing the relevant documentation. Consult a tax advisor or the town hall itself before assuming it’s always paid.

What is the 3% withholding for non-residents?

If the seller is not a tax resident in Spain, the buyer is required to withhold 3% of the sale price and pay it into the Tax Agency (Agencia Tributaria). This amount is deducted from the price the seller receives at the notary and works as a payment on account of Non-Resident Income Tax (IRNR).

Can I be exempt from paying IRPF on the sale of my home?

Yes, in certain cases. The most common are: selling a primary residence with reinvestment into another primary residence within the legal deadlines, and selling a primary residence by people over 65. There are other situations where exemption may be partial or total. Consult a tax advisor to analyze your specific case before signing.

Is the energy certificate mandatory to sell?

Yes, since 2013 it has been mandatory across Spain. It must be registered in the Comunitat Valenciana and available from the moment you advertise the home—not just on the day of signing. If you don’t have it or it’s expired, this is one of the first procedures you should handle.

What if my home has a mortgage and I want to sell it?

You can sell it, but you need to cancel both the financial debt with the bank and the registered charge in the Land Registry. These are two different procedures: one with the bank and one at the notary and in the registry. The costs of registered cancellation are borne by the seller.