Selling a property in Lanzarote involves various costs and considerations, depending on whether you are a resident or a non-resident. In this blog post, we will discuss the expenses involved in selling a property in Lanzarote, including taxes, fees, and exemptions. It is important to note that this information is general in nature, and for personalised advice, it is recommended to consult with a lawyer or agent
If you are a non-resident selling your property in Lanzarote, the buyer will retain three percent of the sales price to pay towards capital gains tax if applicable to you as a seller.
For instance, if you sell your property for 300,000 Euros, you will not receive 9,000 Euros as it will be paid to the tax office. Within 30 days of completion, your lawyer will calculate your real capital gains tax, which is typically 19 percent. If the actual tax amount is, for example, 15,000 Euros, your lawyer will make a return and pay the difference to the tax office.
If there is a refund due, you will need to make a claim and provide a certification from your Spanish bank. It is important to note that the tax office will only make the payment to the actual taxpayer's account.
Selling a Property in Lanzarote as a Resident:
For residents selling their main home, there may be exemptions available.
If you are over 65, you can claim a 100 percent exemption by stating it as your main residence in the deed of sale.
If you are under 65, you can still claim an exemption, but you must reinvest the money in another main home within two years. However, after Brexit, the reinvestment must be made in Lanzarote, Spain or in the EU.
It is crucial to seek professional advice for your specific case. If you are not selling your main home or not reinvesting, you will have to pay capital gains tax
For a capital gain from € 0 to € 6,000 the rate is 19%. The rate for a capital gain between € 6,001 and € 50,000 is 21%. On a capital gain from € 50,001 to € 200,000 23% is charged. From € 200,000 capital gains are taxed at 26%.
Additional Taxes and Fees for Selling Property in Lanzarote:
Apart from capital gains tax, there are other taxes and fees to consider when selling a property in Spain. Property taxes to the local Town Hall are calculated based on the increase in property value or the purchase price. Your lawyer will calculate these taxes using both methods to determine the most favorable option for you.
In terms of fees, the notary fee is typically paid by the buyer, while the estate agency fee is usually paid by the seller. The solicitor's fee varies, so it is essential to request a written quote.
It is also common for the buyer to pay for the land registry fee and the notary fee, but it is crucial to establish this in the contract to avoid any confusion.
Selling a property in Lanzarote involves various costs, taxes, and estate agent selling fees. Whether you are a resident or a non-resident, it is important to understand the implications and seek professional advice to ensure compliance with the law and make informed decisions.
This blog post has provides a general overview of the expenses involved in selling a property in Lanzarote. For personalised advice, it is recommended to consult with an estate agent or lawyer in Lanzarote.
Whether you are selling to downsize, upsize, release equity or perhaps problems with travel restrictions make owning a property in Lanzarote more dificult - Book a Free Lanzarote Property Sellers Consultation Today and get the information you need to get the best value back from your Lanzarote property sale.