According to the latest data published by idealista, the price of existing homes rose by 12.8% year-on-year in May, reaching a new all-time high of €2,391 per square metre.
Despite these high property prices, favourable mortgage conditions—thanks to recent interest rate cuts by the European Central Bank, which have brought borrowing costs down to around 2%—are encouraging many buyers. This confidence has helped push the number of home sales up by 0.4% compared to last year, with 53,589 transactions recorded in April, according to provisional figures from the College of Registrars.
This strong demand means many properties are selling within weeks, or even days. But if you’re thinking of selling your home here in Spain, moving too quickly can lead to costly mistakes that may reduce your final sale price. To help you avoid these pitfalls, idealista/news has put together a list of the most common errors sellers make when putting their home on the market.
Make sure everything's in order before selling
You must have these documents in order before selling:
- Energy certificate: The document certifying a property’s energy use has been mandatory since 1 June 2023 and typically costs between €60 and €130, as it must be issued by a qualified technician following an on-site assessment.
- Nota simple: This document, which verifies whether a property is free of encumbrances, can be obtained from the College of Registrars’ website for €9.20.
- Fit-for-occupancy certificate: A mandatory document in some autonomous communities that certifies the safety and habitability of the home, which costs between €60 and €160 .
- Mortgage cancellation: If the property has an existing mortgage, it must be fully paid off before the sale, as properties with encumbrances cannot be transferred. This process typically costs between €400 and €500.
First of all, taxes
Once the final sale price of a property has been agreed, the seller may be required to pay a series of taxes, depending on specific conditions being met.
Personal income tax on capital gains
If there is a capital gain – meaning the sale price exceeds the original purchase price – the seller must pay personal income tax on the profit made.
- Up to €6,000: 19% personal income tax
- Between €6,000 and €50,000: 21% personal income tax
- Between €50,000 and €200,000: 23% personal income tax
- Between €200,000 and €300,000: 27% personal income tax
- More than €300,000: 28% personal income tax
However, as explained by Gilmar Real Estate Agency, certain exceptions allow sellers to avoid paying this tax under specific conditions. For example, if they:
- reinvest all profits obtained in another permanent residence, that is, a house where you have spent at least three years.
- are over 65 years old, and the home must be their main residence (if the property is a second home, a life annuity must be purchased with this income).
- are a dependent person.
Municipal capital gains tax
When selling your home, you should also consider the municipal capital gains tax (plusvalía in Spanish), a levy imposed by the local council based on the increase in the property's value from purchase to sale.
Since this tax is determined by each council, the rates and calculations can vary depending on the location.
Most common mistakes sellers make when calculating sales expenses
That said, sellers can make mistakes during the sale process that may increase the overall costs.
Gilmar recommends always seeking professional advice: “Buying and selling a home are events we experience only a few times in life, often separated by many years. During that time, regulations change, taxes vary and required documents differ, so it’s essential to consult a professional for guidance.”
Property Tax (IBI)
The firm reminds us that the person registered as the owner on 1 January is responsible for the annual property tax. “Many sellers assume they are exempt from this tax once the sale is agreed, but property tax remains the seller’s liability until the end of the year – unless a separate arrangement is made with the buyer,” the expert explained.
Notary fees
Gilmar reminds us that a property cannot be transferred while subject to mortgage encumbrances, so any outstanding mortgage must be fully paid off.
This requires visiting a notary to sign the mortgage cancellation deed, which can cost up to €500, depending on the terms and outstanding balance.
Additionally, sellers should consider agency fees during the sale, which may sometimes be covered by the buyer. These include the real estate agency’s commission if you appoint them to manage the sale of your home.
Documents needed for a successful sale
You need the following documents to sell a home:
- The energy efficiency certificate is mandatory.
- The Nota Simple that proves that the home is free of encumbrances.
- A certificate confirming that all payments to the homeowners’ association are up to date is required if the property is part of one. It is also advisable to provide the buyer with the association’s bylaws, as well as plans, service contracts, original documents and any other relevant information necessary for the new owner’s smooth transition.
- Certificate of IBI property tax payments.
- Water, electricity and gas bills if necessary.
- Fit-for-occupancy certificate.