Important to know, you will have some fees and taxes to pay when you sell your property in Tenerife. It seems relevant to know before putting your property on the market.
1/ Plusvalía Municipal : It’s a tax that everyone has to pay to the Townhall. It’s a tax calculated on the increase of the cadastral value during the time you owned the property. The tax is no related to the actual profit you made or not on the sale. You can ask the Townhall an estimation giving them the dates of purchase and sale of the property.
2/ Energetic certificate : Since 2013, you need to have one to sell the property. If you bought your property before June 2013, you will probably need to get one. If you bought after that date, you should have it with the Title Deeds. The same certificate will be needed as it is valid for 10 years. Price depends on the property but on a range from 120€ – 300€
3/ Tax on the Profit. This depends if you are resident or not.
If you are resident: You will have to pay 21,75% on the net profit made on the sale in your next tax declaration. You can deduce the taxes, the notarial and registration fees you had to pay when you bought the property. You will be exempted of this tax if the property has been your main residence for at least 3 years and you reinvest the total amount on a new property or if it was your main residence and you’re 65+. It may be better to take contact with a tax adviser on that matter.
If you are not resident: As the spanish tax office won’t be able to collect this tax the year after if you don’t do any tax declaration, they automatically retain 3% of the total amount of the sale. As an example, if you sell your property 200.000€, the buyer has to retain 6.000€ for taxes no matter how much you paid the property. There is a possibility to ask for a reimbursement of part of this amount if you prove that you wouldn’t have to pay as much if you were resident. It may be better to take contact with a tax adviser on that matter.
4/ If you have a mortage on the property, you will have to pay the costs linked to the cancelation of this mortage (Notary and Registration fees)