When you sell a property in Mijas, the price you agree with the buyer isn’t what you actually take home. Before working out whether selling is worth it, you need to know how much of that money goes on taxes and costs. Here it is, straight to the point, with real examples from transactions in Mijas.
The two main taxes when selling
1. Municipal capital gains tax (plusvalía / IIVTNU)
This is a tax charged by Mijas Town Hall on the increase in the land value from when you bought the property to when you sell it. It’s payable whenever there’s been a gain, and in some cases you can even choose whichever calculation method suits you best (the objective system, based on cadastral value, or the real one, based on the difference between purchase and sale price).
Who pays it: the seller, unless otherwise agreed in the contract.
When: you have 30 working days from signing to file it with Mijas Town Hall.
Important: if you sell at a loss (for less than you paid), you may be exempt from this tax, but you have to prove it with the purchase and sale deeds.
2. Personal income tax on the capital gain
If you sell for more than you paid, that difference (the capital gain) is taxed in the following year’s income tax return. The current brackets are:
- Up to €6,000: 19%
- €6,000 to €50,000: 21%
- €50,000 to €200,000: 23%
- Over €200,000: 27%
Example: if you sold a flat in Las Lagunas for €320,000 that you bought years ago for €250,000, your capital gain would be €70,000, which would mean approximately €14,680 in income tax applying the current brackets.
Exemptions many people don’t know about:
- Over 65s: if you sell your main home, you’re exempt from tax on the gain, with no additional conditions.
- Reinvestment in a main home: if you’re under 65 and reinvest the full sale amount in buying another main home within 2 years, you can also be exempt.
Other costs to add on
Besides the two taxes above, when selling you’ll also need to cover:
- Energy certificate: mandatory in order to advertise and sell the property. Between €80 and €150 depending on the size of the property.
- Mortgage cancellation (if you had one): approximately €300 to €1,000, depending on the agency and the bank.
- Zero-debt certificate from the community: usually free or a nominal cost, requested by the buyer or their notary.
- Agency commission (if you sell with an agent): agreed before starting, and in my case only charged if the sale actually goes through.
A complete example of a sale in Mijas
To put the numbers together, here’s an illustrative example of a sale in La Cala de Mijas:
| Item | Amount |
|---|---|
| Sale price | €450,000 |
| Purchase price (years ago) | €340,000 |
| Capital gain | €110,000 |
| Income tax on the gain | ≈ €22,500 |
| Municipal capital gains tax | ≈ €1,800 |
| Mortgage cancellation | €450 |
| Energy certificate | €120 |
| Total costs and taxes | ≈ €24,870 |
In this example, out of the agreed €450,000, the seller kept a little over €425,000 net, once all taxes and costs were deducted.
Why it’s important to calculate this beforehand, not after
Many owners in Mijas set their asking price thinking only about how much they want to make, without factoring in that the tax office and the town hall will take a share. The result is that when the following year’s tax return arrives, the surprise can be considerable.
That’s why, before putting up the “for sale” sign, I always go through a realistic estimate of these costs with my clients, together with the property valuation, so the asking price takes into account the net amount you actually want to end up with, not just the gross price.
Selling in Mijas and want to know what you’ll actually take home?
Every transaction is different: it depends on how long you’ve owned the property, whether it’s your main home, your age and whether you’re going to reinvest in another property. If you’d like us to go through your specific case before putting your property up for sale, request your free, no-obligation valuation or check directly how I support you through the whole selling process.
The information in this article is general and for guidance only, and does not replace advice from a tax adviser or gestoría for your specific case. Income tax brackets and exemptions may vary depending on the regulations in force at the time of the sale.