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Buying or selling a property in Costa Brava is an exciting decision, but it also comes with a series of tax obligations that should not be overlooked. At Immogrupstar, we want to help you understand the taxes associated with this process, so there are no unexpected surprises and you can better plan your investment.

In this article, we will explain the taxes you must pay, whether you are a buyer or a seller, when acquiring or selling properties in this region.

Taxes When Buying a Property in Costa Brava

If you are considering purchasing a property, such as an apartment or a house, you must take into account the taxes that apply depending on the type of property:

1. Transfer Tax (ITP)

This tax applies to the purchase of second-hand properties. In Costa Brava, the percentage typically ranges from 8% to 10% of the purchase price, depending on the Autonomous Community and the value declared in the deed.

For example, if you decide to buy an apartment in Costa Brava for €200,000, you could pay between €16,000 and €20,000 in ITP.

2. VAT and Stamp Duty (AJD)

If you purchase a new property, instead of ITP, you will pay VAT, which is 10% of the property price. Additionally, you will have to pay AJD, which in Catalonia is around 1.5% of the purchase price.

This type of tax is relevant if you are interested in properties in newly developed or recently built areas.

3. Appraisal and Notary Fees

Although not strictly a tax, appraisal and notary costs are also part of the expenses when buying a property. Appraisal can cost between €300 and €600, and notary fees depend on the property price, usually ranging from €600 to €1,000.

Taxes When Selling a Property in Costa Brava

If you are considering selling a property, such as a house or an apartment, there are specific taxes you will need to pay as the owner.

1. Municipal Capital Gains Tax (Plusvalía Municipal)

This tax applies to the increase in land value from the time you acquired the property until you sell it. The calculation depends on the cadastral value and the duration of ownership.

For example, if you list one of the houses for sale in Costa Brava, make sure to calculate the capital gains tax to know exactly how much you will owe to the local council.

2. Income Tax (IRPF)

Selling a property generates a capital gain that must be declared in your income tax (IRPF). The amount payable depends on the difference between the purchase price and the selling price, applying the following rates:

• 19% for the first €6,000 of profit.
• 21% for profits between €6,000 and €50,000.
• 23% for profits over €50,000.

If you sell one of the properties listed in our portfolio of apartments for sale in Costa Brava, we recommend preparing a preliminary estimate to avoid surprises when filing your tax return.

3. Exemption for Reinvestment

If you use the money obtained from the sale to purchase your primary residence, you may be exempt from paying IRPF on the capital gain, provided you meet certain requirements.

Other Associated Costs

In addition to the main taxes, both buyers and sellers should consider other additional expenses that may arise during the process:

1. Utility management: Changing the name on water, electricity, and gas contracts can involve small administrative fees.
2. Real estate agency fees: Hiring a real estate agency in Costa Brava like Immogrupstar ensures a smoother experience but also involves a cost, usually calculated as a percentage of the sale price.

Plan Your Budget

Understanding the taxes associated with buying or selling properties is essential to avoid complications and plan your budget. At Immogrupstar, we not only offer you a wide selection of properties but also comprehensive advice at every stage of the process.

If you are interested in learning more about the associated costs, exploring the best houses for sale in Costa Brava, or discussing how to maximize your property’s value in the sale of apartments in Costa Brava, don’t hesitate to get in touch with us.

Conclusion

Buying or selling a property in Costa Brava involves more than just negotiating the price. Taxes and other associated expenses must be part of your planning to ensure a transaction without surprises. At Immogrupstar, our experience and knowledge of the local market enable us to provide the necessary support for you to make the best decisions.

If you need assistance or have questions about managing taxes when buying or selling a property, we are here to help!