How much tax do you need to pay for selling an apartment? Everything you need to know.

If you are considering selling real estate, you are probably wondering how much it will cost you and what portion goes to taxes on the sale of the apartment. After all, such transactions are not free: there is likely to be a capital gain that you will need to report in your personal income tax return, as well as certain taxes for which you are responsible. To help you out and allow you to accurately calculate all expenses, we will take a detailed look at each tax that is paid when selling a property.

What taxes need to be paid when selling real estate? The expenses related to the sale of real estate are divided into various categories (management, real estateagency, energy audit, notary, registrar...), but undoubtedly, the main one is related to the taxes on the sale of housing.

How much is paid to the Tax Service for the sale of an apartment in personal income tax (PIT)?

Capital gains from the sale of real estate must be reported in your income tax declaration, always if there has indeed been an increase in capital gains from the sale of the property. It is also possible to sell at a loss; in this case, you must also report the transaction in your tax declaration as a capital loss from the sale of real estate.

What rate is applied to capital income?

If you have capital income, it should be included in the taxable base for savings, and taxed accordingly:

• The capital gains tax is 19% up to 6,000 euros.
• At 21% for the range between 6,000 and 50,000 euros
• 23% of 50,000 euros to 200,000 euros
• 27% from 200,000 to 300,000 euros
• For amounts over 300,000 euros, the rate is 28%.

How to calculate personal income tax for the sale of property?

It is important to know how to calculate the capital gain from the sale of real estate, and for this, you need to know the selling price (subtracting all expenses and taxes paid upon sale), as well as the purchase price (adding up the expenses incurred at that time, including construction and improvements).

From all of the above, it follows that regarding when to declare the sale of real estate in the tax return, the answer is always and in any case, regardless of whether there is a capital gain, a loss, or if the transaction yields a neutral result.

How to avoid paying taxes to the Tax Service for selling property?

If you want to avoid paying taxes to the Tax Service on capital gains from the sale of property in personal income tax, here are a few options you can explore:

• Take advantage of the tax exemption when reinvesting in a residential property.
• Use the exemption in the case of selling residential property to individuals over 65 years old.

How much do I need to pay to the Tax Service for selling an apartment regarding the municipal tax on property value increase?

In fact, this tax will not go to the treasury of the Tax Service, but to your municipality. Nevertheless, it is still a significant tax burden that you should be aware of.

How to calculate the municipal tax on the increase in property value?

To calculate the municipal tax on the increase in property value, the cadastral value as well as the purchase and sale prices are taken into account when determining the tax base. You will also need to know the rate set by the relevant municipality.

How much needs to be paid to the Tax Service for the sale of an apartment in property tax, and who is responsible for paying it when selling an apartment?

As for property tax, the rules actually state that it must be paid by the property owner on the date the tax arises, which is January 1st of each tax year that corresponds to the calendar year.

However, it is often customary to agree on splitting the payment between the seller and the buyer, proportionally to their annual expenses, taking into account the date of the purchase-sale transaction.

I graduated in journalism and law and work as a content specialist in the fields of law and economics. I write for Idealista News about the legal aspects of real estate. With over 10 years of experience in this area, my main goal has always been to promote knowledge, aiming to make legal language easier to understand. I'm happy to be part of this team!