What expenses can I deduct for the sale of a house? If you sold a home last year or intend to do so this year and want to get a head start on what you will have to pay, you are right to ask yourself this question.
The sale of a house in Fuerteventura is taxed as capital gain in the Income Tax Return. However, calculating the capital gain is somewhat more complex than it seems. It is not enough to simply subtract from the sale value the value for which you acquired the property, in order to calculate the capital gain properly, it is necessary to take into account all the deductible expenses that can help you to reduce the final amount to be disbursed.
But what expenses are we talking about? What are the deductible expenses for the sale of a house in Fuerteventura and how can they help you to pay less in your next tax return?
*Below we leave you with all the deductions in habitual residence in the Canary Islands for the year of the Renta 2023. Download the Manual of the Renta 2023 and access to the existing deductions in housing in the Canary Islands to which you will be able to take advantage of in your next Declaration.
Manual Renta 2023 in the Canary Islands [Deducciones en vivienda]
Deductible expenses when selling in Fuerteventura
The lower the sale price you can declare for the sale of your house in Fuerteventura, the lower will be also the capital gain obtained and, therefore, the less you will have to pay tax on it in your Income Tax Return.
The deductible expenses for the sale of a house in Fuerteventura are as follows:
- Fees of the real estate agent in charge of managing the transaction.
- Notary registration fees.
- Administrative expenses.
- Mortgage cancellation expenses (if any).
- Sales taxes(Plusvalia Municipal).
Thus, the income tax brackets to be applied to capital gains would be defined as follows. The table also shows the changes introduced with respect to 2022.
| Income brackets Personal Income Tax (IRPF) | Tax rate (2022) | Tax rate (2023) |
|---|---|---|
| Up to €6,000 | 19 % | 19 % |
| From 6,000 € to 50,000 €. | 21 % | 21 % |
| From 50,000 € to 200,000 €. | 23 % | 23 % |
| From 200,000 € to 300,000 €. | 26 % | 27 % |
| More than €300,000 | 26 % | 28 % |
Deductible expenses when buying in Fuerteventura
On the other hand, the higher the price for which you bought your house in Fuerteventura, the lower will also be the capital gain that Hacienda understands that you are getting for its sale and, therefore, the less you will have to pay tax on it in your next tax return.
The deductible expenses for the purchase of a house in Fuerteventura are as follows:
- Investments and improvements: adjustments intended to increase the capacity or habitability of the property or to extend its useful life.
- Purchase taxes: Transfer Tax, VAT or Stamp Duty.
- Notary fees.
- Administrative expenses.
- Land Registry.
- Fees charged by the real estate agency in charge of managing the transaction.
Other housing deductions
In addition to the deductions for the sale of a house in Fuerteventura, in your Income Tax Return you can also take advantage of a number of deductions related to habitual residence. According to the stipulations of the Tax Agency, the deductions for habitual residence in the Canary Islands for the Renta 2023 to which you can apply as a taxpayer are the following:
- Deduction for investment in primary residence.
- Deduction for energy rehabilitation works and refurbishment of the habitual residence.
- Deduction for works of adaptation of the habitual residence by people with disabilities.
- Deduction for renting a primary residence.
- Deduction for renting a primary residence linked to certain dation in payment transactions.
- Deduction for expenses on credit insurance premiums to cover non-payment of rent on residential leases (deduction of the lessor).
To have access to the amount and requirements of each deduction, you can download the Manual de la Renta 2023, a PDF with all the information you need about the deductions on permanent residence existing in the Canary Islands.
Manual Renta 2023 in the Canary Islands [Deducciones en vivienda]
