What are the costs and taxes for a seller in Mallorca? This question is particularly interesting for people who are thinking of selling their property in Mallorca now. When calculating, a distinction is made in advance between non-resident and resident. You need to consider three cost positions:
Non-resident
1. Value added tax (plusvalía municipal). This tax is based on the cadastral value (valor catastral) during your ownership period.
2. Tax on profits. The profit from the sale of the property is taxable at 19% if you do not have your main tax residence in Spain. Within 4 months after the sale you are obliged to file a tax return. The 3% advance tax payment withheld from the purchase price is credited against the tax amount determined in the tax return.
3. Brokerage fee. Agreed brokerage commission incl. VAT.
Resident
1. Value added tax (plusvalía municipal). This tax is based on the cadastral value (valor catastral) during your ownership period.
2. Tax on profits. The profit from the sale of real estate is taxed progressively:
- up to 6.000€ -> 19%
- from 6.000 € up to 24.000€ -> 21%
- from 24.000 € maximum tax on the remaining profit -> 23%
Residents are only exempt from tax if they sell their main residence and acquire a new main residence. They can be exempted from paying profit tax within two years before and after the sale. (Only main residence, not secondary residence)
The tax declaration and taxation of the profit is made in the income tax return of the year of sale, which must be submitted by 30 June of the following year.
3. Brokerage fee. Agreed brokerage commission incl. VAT.
We are happy to support you in the sale of your property. As part of this, we will take care of the calculation of the value added tax, explain to you in detail the process of the sale and what costs and taxes for you as a seller will incur in the process. Do not hesitate to contact us now!