If you are thinking about selling your house in Tenerife, it is essential to understand the legal and tax aspects that may affect the process. Selling a property is not just about finding a buyer but also about meeting certain obligations that may influence both costs and the time needed to successfully close the transaction.
1. Municipal capital gains tax
The first tax you will need to pay when selling your house in Tenerife is the municipal capital gains tax, which taxes the increase in the value of the land during the time you have owned the property. This tax varies depending on the municipality and is calculated based on the cadastral value of the land and the years the property has been in your possession. It is important to request an estimate of this tax to avoid surprises.
2. Personal income tax (IRPF)
When selling a property in Tenerife, you must declare the profit obtained in your income tax return. The IRPF taxes the capital gain you have made, which is the difference between the purchase price and the sale price. If the house has been your main residence for more than two years, you may be exempt from paying this tax. Also, if you reinvest the money in a new primary residence, you may benefit from tax exemptions.
3. Notary, registry fees, and commissions
When selling your property, you will have to cover notary fees, which include the drafting of the sales deed. Additionally, there are property registry fees and possible commissions if you use an estate agent. While the buyer usually covers part of these costs, you should be aware of which expenses each party is responsible for.
4. Energy certificate
Since 2013, the energy efficiency certificate has been mandatory for any property for sale. This document indicates the property’s energy consumption and must be presented before the sale is finalised.
By understanding these aspects, you will be better prepared to sell your house in Tenerife without any legal or tax complications.
Do you want to sell your house in Tenerife without complications? Contact us and we will help you with everything from the sale to the paperwork!