This article explains the real costs, taxes and deductions involved in selling a property in Gran Canaria – including a realistic calculation example based on a sale price of €350,000.
Most property owners start with a simple question:
“How much can I sell my property for?”
The more important question usually comes later — sometimes too late:
“And how much will I actually keep?”
Because between the agreed sale price and the money that finally reaches your bank account, there are costs that many owners either underestimate or don’t calculate at all.
This article exists to avoid unpleasant surprises.
No drama. No scare tactics. Just clarity.
The most common mistake: thinking gross instead of net
Many owners calculate like this:
“If I sell for €350,000, I’ll receive €350,000.”
That’s not how it works.
What really matters is not the sale price, but the net amount after all costs and taxes.
Let’s go through them step by step.
1. Estate agency fees
In Gran Canaria, the seller usually pays the agency fee.
Typical range:
3% to 6%
plus 7% IGIC on the agency fee
Example:
5% on €350,000 = €17,500
IGIC (7%) on €17,500 = €1,225
Total agency cost: €18,725
The key point isn’t the percentage itself, but whether the strategy, pricing and negotiation actually increase your final result.
2. Municipal capital gains tax (Plusvalía)
This tax is charged by the local council and depends on:
- how long you owned the property
- the cadastral land value
- municipal coefficients
It is not calculated as a percentage of the sale price.
In practice, it can range from a few hundred euros to several thousand euros, especially for long ownership periods.
In most cases, the seller pays it..
3. Capital gains tax
If you are a Spanish tax resident
You pay tax on the actual profit, not the sale price.
Sale price
minus purchase price
minus deductible costs (notary, registry, renovations, selling costs).
Current tax brackets (simplified):
19% to 28%, depending on the gain.
If you are NOT a Spanish tax resident
Very common in Gran Canaria.
The buyer withholds 3% of the sale price and pays it to the tax office as an advance.
Later:
- overpaid → refund
- underpaid → difference must be paid
The effective tax rate on the gain is usually 19% (EU/EEA residents).
4. Mortgage cancellation (if applicable)
If there is a mortgage, it must be cancelled:
- financially
- and at the Land Registry
Typical cost:
€300 – €1,500
5. Mandatory documents and small expenses
These include:
- energy certificate
- updated land registry extracts
- community certificates
Not huge amounts, but part of the real cost.
6. The “invisible” costs
Often forgotten:
- prorated property tax (IBI)
- community fees
- outstanding charges
- utilities settlement
They don’t stop the sale, but they reduce the final net amount.
Real Example: Selling for €350,000
Assumptions:
- Sale price: €350,000
- Agency fee: 5% + IGIC
- Mortgage in place
- No special situations
Agency fee: €18,725
Plusvalía: approx. €2,500
Capital gains (example):
- Purchase price: €230,000
- Deductible costs: €20,000
- Taxable gain: €100,000
Spanish tax resident (≈23%): €23,000
Non-resident (19%): €19,000
Mortgage cancellation: €800
Documents: €300
Net result
Spanish resident: approx. €304,675
Non-resident: approx. €308,675
(All figures are indicative.)
Final thought
Selling a property isn’t about the highest asking price.
It’s about what remains after everything is settled.
Clear numbers lead to better decisions — and calmer sales.
