What taxes are paid when selling a house in Spain?
22 - 04 - 2026
Selling a house can be an exciting experience, but it also involves a series of procedures and costs that you should know to avoid surprises. In this article, we explain the taxes and expenses you will need to face when selling a property in Formentera, so you can plan ahead and make a successful sale.
Main taxes when selling a house
When selling a property, there are several taxes you will have to pay. These are the most common in Spain, and Formentera is no exception. Knowing them will help you calculate the total cost of the sale and avoid costly mistakes.
IRPF for the sale of a property
When you sell a property, you must declare the capital gain obtained from the sale. This is done through the IRPF, and the amount you will have to pay depends on the difference between the sale price and the acquisition price, as well as the expenses related to the transaction.
The gains are taxed based on the brackets established by the Treasury for 2026:
| Gain | IRPF |
|---|---|
| Up to 6,000 € | 19% |
| Between 6,000 € and 50,000 € | 21% |
| Between 50,000 € and 200,000 € | 23% |
| Between 200,000 € and 300,000 € | 27% |
| More than 300,000 € | 28% |
Municipal capital gains tax
This tax must be paid to the Formentera municipality for the increase in land value during the time you have owned the property. It does not apply to the sale price but to the cadastral value of the land and the years you have owned the property. If you sold the house for less than you bought it, you may not have to pay this tax.
Non-Residents Income Tax (for foreigners)
If you are a non-resident in Spain and sell a property, the buyer must withhold 3% of the sale amount and submit it to the Treasury on your behalf. This tax is calculated on the sale value and is intended for the non-resident income tax.
Other costs associated with the sale
In addition to taxes, when selling a house in Formentera, you will face other costs such as the following:
- Energy certificate: Required to sell the property. The cost can range from 60 to 130 €.
- Simple note: A document from the Property Registry that confirms the legal status of the house. Its price is 9.2 €.
- Real estate agency fees: If you decide to sell through an agency, you will have to pay their fees, which are usually a percentage of the sale price.
- Notary fees: The cost of the public deed of sale, usually paid by the seller. The fees range from 600 to 875 € depending on the value of the property.
What expenses can you deduct when selling a house?
There are certain expenses that can reduce your taxable base in the IRPF when selling a property. These are some of the most common:
- Real estate commission
- Municipal capital gains tax
- Mortgage cancellation fees
- Cost of renovations and improvements made to the house
- Taxes related to the purchase (such as ITP or VAT)
Frequently asked questions about taxes when selling a house
Do I have to pay taxes if I sell my house for less than I bought it?
No, in this case, you will not have to pay the municipal capital gains tax, as this tax only applies if there is an increase in land value during your ownership.
What happens if I am over 65 years old and sell my house?
If you are over 65 years old and sell your primary residence, you may be exempt from paying IRPF on the capital gains obtained from the sale.
How can I reduce taxes when selling my house?
You can reduce your taxable base by deducting certain expenses such as the real estate commission, the municipal capital gains tax, mortgage fees, and renovations made to the house.
Need help selling your house in Formentera?
Selling a property can be complicated, but with the right help, you can ensure the entire process is smooth and profitable. If you have questions about taxes or any other aspect of the sale, don't hesitate to contact us! Our real estate agency in Formentera is here to guide you every step of the way.
Contact us today for a free consultation!
