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Taxes for sellers

What taxes affect the seller ?

In this case the tax will depend largely on whether the seller is a company or an individual and if it is a person resident in Spain for tax purposes or otherwise if it is a non-resident.

For resident entities, the tax to be paid will be the Corporate Tax, for individual residents, Income Tax for Individuals , and finally, in the case of non-residents, whether societies as whether they are individuals, the Tax on nonresident income .

While the corporate and non-residents taxes, with exceptions, are taxed at a fixed rate, in the case of individuals is progressive type.

On the other hand, the figure of the seller bears the obligation to settle other tax: Tax on the Increase in Value of Urban Land (IIVTNU ) , also known as the " municipal capital gains " .

This tax, as its name suggests, is levied on the increase in value that the land, which is the urban real estate, may have undergone since it was acquired at the time of transmission.

For the calculation, notwithstanding that there is a state law that regulates the coefficients and levies applied, it will depend on what each of the municipalities set in their ordinances.

On the other hand, the value on which the same calculation is applied is the cadastral value, which is usually much lower than the market value.

In the real estate transfer tax should also settle indirect taxes;

The seller is liable to the Public Administration to pay the VAT.

The buyer will be responsible to the Public Administration to pay the TPO .

For more on this point see section under Taxes for buyers. 

We hope we have helped to give some light on the tax implications in a transaction of a property. In case you are interested in more specific advice, please contact us.


This entry has been made in accordance with the regulations in force at the time it this was written.

The information has been extracted mainly from the websites of the State and the Regional Tax Offices, respectively, as well as various databases.

Mallorcasite is not responsible for any errors that may exist in this note, since the purpose of it is to provide basic information to users.

Attention developers, supported VAT is over! See our post .