I have a home and I am worried about the cost of the sale
Many potential home sellers are concerned about the cost of selling.
But the question is to know which ones belong to the seller.
First of all, the property that is sold has to be up to date of what the community is, taxes like ibi, rubbish , if it is not paid, you have to do it before going to the notary
Then if the house is mortgaged, the mortgage will have to be canceled on the day of signing
The cost of cancellation can represent 0.5% of the outstanding amount to pay ( it depends of the contract with the bank ) and this cancellation will have to publish so we can count on about 1000 euros of registration and Notary
But the biggest cost, the one that scares us is the “ PLUS VALIA “
What are we talking about ?
There are two types of Plus valia :
- The plus valia of the hacienda
- The Municipal Plus valia
The Plus valia of the hacienda
It is taxed in the IRPF, the residents will have to declare it in income tax of non residents.
The difference is the price difference between the purchase price and the sale price, is called profit and consists of a patrimonial increase or rather a plus
Before 2015 there were correctives that did not raise so much plus valia but these have disappeared and now the payment has gone up a lot.
The profits taxed thus
The profits will be taxed according to the following three installments in the 2016 income:
- Earnings up to 6,000 euros -> 19%
- Profits between 6,000 and 50,000 euros -> 21%
- Profits greater than 50,000 euros -> 23%
But there are important exceptions:
Reinvestment in habitual residence
Nothing is paid if it is reinvested in the purchase of another home. In the case of reinvestment in normal housing, a number of requirements must be fulfilled in order to effectively allow the exemption:
- The house sold must be the usual one.
-It has to reinvest everything in the purchase of another habitual house. If only one part is invested the other tax
- That the purchase of the new habitual residence takes place within a maximum period of two years from the sale.
Over 65 years old
There is and is that of people over 65 years.
In the transmission of any type of real estate, people over 65 do not have to pay taxes if the amount serves to create an insured annuity in the six months after the transmission, this can not exceed € 240,000
In the case of a non-resident seller:
The person who buys the property, is obliged to retain and enter into the Public Treasury 3% of the agreed consideration. This retention has for the seller the nature of payment on account of the corresponding tax for the gain derived from the transmission. Therefore, the purchaser will deliver to the non-resident seller a copy of the model 211 (with which the withholding has been entered), so that the latter can deduct the withholding of the quota to be entered resulting from the declaration of the profit. If the amount withheld is higher than the quota to be entered, the refund of the excess may be obtained.
The municipal plus valia
The tribute, applied by the city councils, is applied according to a formul a that takes as base the cadastral value of the plot and multiplies it by a coefficient according to the number of years that have passed between the purchase and the sale, with which Always paid by the seller even if the property was sold at a loss.
This situation being unfair for those who had not made benefits were made resources before the constitutional and from the beginning of the year it is clear that you do not have to pay if there is no profit. Although this will affect the financing of municipalities, the government has decided to modify the law in this regard.