How to calculate the capital gain when selling your house in Moraira?

Find out how much tax you will have to pay to the Inland Revenue on the sale of your house in Moraira depending on the capital gain obtained. Practical example.

The price of property on the Costa Blanca continues to rise, and Moraira is a good example of this. According to the Idealista price index, the price of property in Moraira has increased by 47% over the last 5 years. If you have a property in Moraira and you are thinking of selling, now is the time to get a significant financial gain for it.

However, before closing the operation, it is essential to understand what this financial gain implies from a tax point of view. The sale of a property generates a capital gain that is subject to tax. Calculating the capital gain will help you to know how much tax you will have to pay on the sale of your property in Moraira from the outset, without any last-minute surprises or unforeseen events.

Calculation of capital gains

To calculate the capital gain on the sale of your property in Moraira, you must follow the following formula:

• Capital gain = transfer value – acquisition value

So that you can easily apply this formula to the sale of your house in Moraira, we will explain each of its terms below.

Transfer value

The transfer value is obtained by subtracting the costs associated with the operation from the sale price of your house in Moraira.

Practical example:

• Sale price: 370.000 euros
• Estate agency fees (3%): 11.100 euros
• Municipal capital gains tax: 8.500 euros
• Cancellation of the registration of the mortgage: 1.000 euros
• TOTAL expenses associated with the sale: 20.600 euros

To calculate the transfer value of your property in Moraira, you have to subtract from the 370.000 euros of the sale price, the 20.600 euros related to expenses and taxes of sale. As a result, you will obtain a transfer value of 349.400 euros.

*If you don’t know how much you will have to pay for the Plusvalia of your property, you can calculate it with this calculator of Plusvalia Municipal in Moraira:

Acquisition value

The acquisition value refers to the price for which you bought your property, plus the costs and taxes associated with the purchase and the significant improvements and investments that you have made in the property.

Practical example:

• Purchase price: 250,000 euros
• Transfer Tax (10%): 25.000 euros
• Notary fees: 800 euros
• Land Registry fees: 300 euros
• Gestoría Fees: 300 euros
• Reforms carried out: 3.000 euros
• Mortgage constitution fees: 2.000 euros
• TOTAL costs associated with the purchase: 57.800 euros

To calculate the purchase value of your property in Moraira, you have to add to the 250.000 euros of the purchase price, the 66.800 euros related to expenses, taxes and investments. As a result, you will obtain an acquisition value of 307.800 euros.

Capital Gain

Once you have calculated the transfer value and the acquisition value of your property, you only have to apply the capital gains formula. That is to say,

349.400 euros (transfer price) – 307,800 euros (acquisition price) = 41,600 euros (capital gain).

In the example seen throughout this article, you will obtain a capital gain of 41,600 euros from the sale of your house in Moraira.

How much will you pay to Hacienda?

The taxation on the capital gain obtained from the sale of your house in Moraira varies depending on the capital gain obtained according to the following income tax brackets:

• Profit up to 6.000 euros: 19%
• From 6.000 to 50.000 euros: 21%
• From 50,000 to 200,000 euros: 23%
• From 200,000 to 300,000 euros: 27%
• Profit of more than 300.000 euros: 28%

Continuing with our example, for a capital gain of 41,600 euros, we would have to apply a personal income tax rate of 21% (second bracket).

Practical example:

• Capital Gain: 41,600 euros
• Tax rate to be applied: 21%
• TOTAL to be paid to the Inland Revenue: 21% of 41,600 euros = 8,736 euros

How can we help you sell your property in Moraira?

Calculating the capital gain on selling your house in Moraira will allow you to know how much tax you will have to pay on your transaction and, consequently, how much money you will have to set aside from the sale proceeds to cover the associated costs.

But what if we were to tell you that you can make an even bigger profit on the sale of your property? Houses in Moraira have increased in value by 45% over the last 5 years, but the economic benefit you can get for it can be even greater if you carry out a proper marketing plan.

At Hispania Homes by Keller Williams we have all the real estate services you need to maximise your sales profit :

• Professional valuation of your property to set the right market price.
• Complete management of the sale, from advertising to negotiating with buyers.
• Professional photography and videos to bring out the full beauty of your property.
• Fiscal and financial advice, so that you are always aware of the taxes and associated costs.

If you are thinking of selling your property in Moraira, let us help you maximise your profit.