The purchase and sale of a home entails expenses that are divided between the two parties to the operation. As it is a second-hand home, the associated expenses are notary fees, registration in the Property Registry, appraisal or the corresponding taxes, among others.
The seller must assume the expenses of granting deed. This is established by the Civil Code if the contract does not specify otherwise. In addition, the charges associated with the home must be taken care of. To that we must add his tax obligations. All other costs will be the responsibility of the buyer.
Despite the fact that it is not a tax directly linked to a sale transaction, whoever sells must pay Personal Income Tax (IRPF) on the profit obtained from the sale. It will be paid the year after the sale, when presenting the Income statement.
Taxed for the capital gain in Income 2022
From the Ministry of Finance, which is directed by María Jesús Montero, they remember that “when you sell or transfer a property (home, premises, garage) that you have in your estate, you obtain a profit or loss that will be determined by the difference between the transfer values and acquisition”.
Thus, in general, tax will be paid only if the sale price is higher than the purchase cost. If this result is negative or equal, the sale will have to be declared, but it does not entail a tax expense. To calculate if a benefit has been obtained, it is important to take into account all the expenses associated with the sale, since imports can be deducted.
The first is the result of the sale value minus the expenses and taxes that the seller has assumed to carry out the operation. The amounts that can be deducted are the real estate expenses -if it was used to sell the house-, the expenses for canceling the mortgage -if any- and the amount of the municipal capital gains.
The municipal capital gain corresponds to the Tax on the Increase in Value of Urban Land (IIVTNU). It is a municipal tax -competence of the city councils- that taxes the increase in value of urban land from its acquisition to its transfer.
Within the savings base
The result is included in the tax base of savings, together with other concepts. Once all the concepts are included, the Tax Agency applies a tax rate that ranges between 19% and 26%. The first 6,000 euros will be taxed at a rate of 19%, the tranche of the tax base between 6,000 euros and 50,000 euros is taxed at 21% and the tranche between 50,000 euros and 200,000 euros is taxed at 23%. Finally, for income that exceeds 200,000 euros, 26% is taxed.
If the sale of the house has already been carried out in 2023, it must be borne in mind that the Government included as a novelty in the General State Budget two new rates based on savings. Between 200,000 and 300,000 a rate of 27% will be applied and from 300,000 euros it will be 28%.
Exemptions not to pay income tax
The Ministry of Finance establishes exceptions so that you do not have to pay for the profit obtained from the sale of a home. In the first place, if the taxpayer sells his habitual residence and with the money obtained buys a new residence that will become his habitual one. All this within a period of 2 years, before or after the sale. The Tax Agency will recognize the new home as such if it is moved into within 12 months from the date it was purchased or the works were completed.
For those over 65 years of age, the exemption from the gain applies whether the habitual residence is transferred in exchange for capital or in exchange for temporary or lifetime rent. In addition, the capital gain from the dation in payment or from a foreclosure procedure that affects your habitual residence is also exempt.