The Real Costs of Selling a Villa in the Hondón Valley

Selling your Spanish villa can feel like a fresh start — but before the “SOLD” sign goes up, it's essential to understand the true costs involved. Whether you’re relocating, downsizing, or cashing in on an investment, you’ll want to walk away knowing exactly what to expect.

Have you considered all the fees? Do you know who pays what? Let’s dive into the key costs of selling property in the Hondón Valley.

1. Capital Gains Tax (CGT)

If your property has increased in value since you bought it, you may owe Capital Gains Tax.

• Resident sellers may benefit from exemptions (especially if reinvesting in a primary home).
• Non-residents pay a flat rate of 19% on gains.
• Tax is based on the difference between your purchase price and the selling price, minus allowable expenses (e.g., notary, legal fees, upgrades).

Have you kept your receipts for renovations? They might reduce your tax bill.

2. Plusvalía Municipal (Local Land Tax)

This is a local tax based on the increase in land value since you bought the property.

• Calculated by your local town hall.
• Usually paid by the seller, though it can be negotiated.
• Amount varies based on location and how long you've owned the home.

Tip: Ask your solicitor to get an estimate before listing the property.

3. Estate Agent Fees

Unless you sell privately, you’ll pay a real estate commission — usually 3% to 5% of the final sale price.

• Often no upfront fee, paid upon completion.
• Agents help with marketing, viewings, negotiation, and paperwork.

Are you using a local agent who truly knows the Hondón market?

4. Legal & Administrative Fees

A solicitor (abogado) or gestor is essential to guide you through contracts and Spanish bureaucracy.

• Expect to pay €1,000 to €2,000, depending on complexity.
• They ensure all paperwork is in order and can also calculate your tax liabilities.

5. Energy Certificate (Certificado de Eficiencia Energética)

Required by law to sell — shows how energy-efficient your home is.

• Cost: €100 to €250, depending on the size of the property.

Have you arranged this already? Without it, you can’t legally complete the sale.

6. Mortgage Cancellation Fees (If Applicable)

If you have an outstanding mortgage:

• You’ll pay a cancellation fee (usually 0.5% to 1%).
• The bank will also charge for the notary and registration fees to remove the charge.

7. Non-Resident Retention (3%)

If you’re a non-resident, the Spanish tax office retains 3% of the sale price at completion to cover any capital gains tax due.

• If you don’t owe CGT, you can claim it back — but the refund process can take months.

Summary: Know Before You Sell

Selling your villa in the Hondón Valley isn’t just about finding a buyer — it’s about understanding the true cost of cashing out. From taxes to agent fees, being informed helps you avoid surprises and sell with confidence.

Before you list, ask yourself:

• Have I factored in all these costs?
• Is now the right time to sell?
• Am I working with trusted local professionals?

Knowledge is power — and a smoother sale.