Buying or renting has its expenses and taxes. Treasury and administrations do not forgive. In this article we will break down those that belong to the seller of a home and also those that correspond to the owner in the case of rent.
Expenses and taxes on the sale of a home
Notary and Land Registry
Unless the parties decide otherwise, the cost of the parent deed must be borne by the seller; the buyer must be in charge of the first copy and after the sale. Keep it in mind, because it is not uncommon to see contracts in which it is established that all expenses correspond to the buyer.
Mortgage and registration cancellation
Since for the new buyer it is necessary to receive the house free of charges, the seller must pay the notary fees and cancellation of any previous mortgage, if any. It could even happen that the mortgage is amortized, but not canceled. And these are expenses to be paid by the seller.
Personal income tax
When selling a house, income must be declared and taxed. The sale of a property must be taxed in the Personal Income Tax (Personal Income Tax) if you reside in Spain. In certain cases, although it must be declared, there is no need to pay for it. This happens when the habitual house is sold and reinvested in another one also to live. Or if the seller is over 65 years old.
Any gain (if any) must be declared as a capital increase. That is, pay for the difference between the amount of the purchase and that of the sale provided there have been benefits. And if there are losses, it can be compensated with other increases in equity of the same type and in the same year. How is it calculated? Taking into account the difference between the value at which the house is sold and the value at which it was purchased.
Municipal Goodwill
We talked about the Tax on the Increase of Value of Urban Nature Lands (IIVTNU), known as municipal capital gain. It is liquidated in the town halls. It is calculated on the cadastral value of the house and the number of years it has been owned. But on this subject there is more and more jurisprudence and it is more cumbersome, hence the need to consult an advisor in case of doubt.
Who pays the IBI?
The seller must be up to date with community receipts, spills, IBI, garbage rate. Moreover, if the sale is signed on January 2, the IBI, the payment of this tax would be the responsibility of the seller because he is the owner of the house at the beginning of the year, and therefore it is important to clarify and even agree who pays it.
Energy Certificate
The seller must submit the energy efficiency certificate, mandatory since mid-2013.
And what should the owner face if he rents a home?
Declare the rent in the IRPF
Rental income must be declared to the Treasury. Real estate capital returns are considered. To determine what amount to declare, deductible expenses are subtracted from the income earned per year for the rental. On this amount, where appropriate, certain reductions may apply. For example, when the tenant uses the property as a habitual residence, the landlord can deduct 60%. That is, it will only pay 40%
If the house is leased one time and another not, each period is declared differently. When free, it is considered as imputed income and has no deductions. However, it may happen that an owner has, during the same year, rented housing for a few months and vacated others. When leased, that time goes into real estate capital returns.
In the event that the lease is carried out as an economic activity, the amounts obtained are not considered as income from real estate capital, but from economic activities, and must be declared in the specific section of the rent.
Tourist rental rates
The owners of this type of housing must pay the fee established by each autonomous community.
Other expenses of the owner:
Interest on loans if you have them
Home insurance
Repair and conservation expenses
Non-state taxes and surcharges
Community of owners
Source: Fotocasa Blog
