If you are the owner of a house, villa or apartment in Fuerteventura, you are interested in knowing what taxes are levied on the sale of a real estate property on the island.
You may have a rented home and it is time to sell, due to the high profitability market, or you may have rented it and the tenant has proposed to buy it, or you may return to your city or country of origin and want to enjoy the benefits of selling your house in Fuerteventura.
In either case, we recommend that you consult with an expert real estate agent in Fuerteventura, in order to
- analyze your real estate transaction,
- the moment of the local real estate market,
- value the right price for sale,
- propose reforms and improvements to increase that value in the market and
- analyze the tax repercussions of the sale, that is, calculate the profitability of the sale, taking into account the taxes of the real estate operation.
The taxes for the sale of a home in Fuerteventura are:
Personal income tax
It is a state tax that taxes the capital gain that you obtain from the sale operation.
The IRPF statement must be submitted within 30 days, counted from the day after the operation is carried out, in a specific model for earnings obtained by residents (model 211).
In addition, said operation is subject to withholding or payment on account of 5% of the price of the operation, which is then offset by the final amount to be paid.
If the home was purchased before 1986, the capital gain would be exempt, so the tax does not have to be paid.
To calculate the capital gain, the acquisition value is subtracted from the transmission value. The purchase price is taken into account (adding improvements, plus expenses and taxes, less depreciation) and the sale price, together with expenses, such as taxes and procedures.
Transmission expenses include real estate fees, municipal capital gains or mortgage cancellation expenses.
To this result, a certain section of the IRPF will be applied. These tax rates are established with percentages based on earnings:
- 19% for the first 6,000 euros,
- 21% the next 44,000 euros,
- 23% up to 200,000 euros,
- 26% for amounts from 200,000 euros.
Regarding the acquisition value, you can add the expenses of the mortgage, notary, Property Transfer Tax… but not mortgage interest or bank commissions. The costs of reforms and repairs can be added. In addition, tax deductible amortizations must be subtracted, such as deductions from personal income tax, IBI, community expenses…
We help you calculate the taxes for the sale of your house in Fuerteventura
Exemptions in the payment of personal income tax in Fuerteventura
- Reinvestment of the habitual residence. If the profit is reinvested in a new habitual residence, the profits from the sale of a house may be tax free.
- Settlement. Any capital gain derived from the dation in payment of the house, destined to pay a mortgage debt, is exempt from tax.
- Over 65 years and dependents. Those over 65 years of age are not taxed on the sale of their habitual residence, nor are people in a situation of high degree of dependency.
Income tax deductions for housing, in Fuerteventura
Taxpayers who in 2022 have had their habitual residence in the territory of the Autonomous Community of the Canary Islands, may apply the following regional deductions:
- For investment in habitual residence
- For energy rehabilitation works and reform of habitual residence
- For adaptation works of the habitual residence for people with disabilities
- For rental of habitual residence
- For lease of habitual residence linked to certain dation-in-payment operations
Download the deductions for housing in the IRPF, for residents in Fuerteventura
In addition to this tax, other tax obligations derived from other taxes are generated:
real estate tax
The IBI, as a tax payable annually, is divided between the buyer and the seller, taking into account the date of the sale. Thus, when selling, the calculation is made to distribute the fee between both parties.
Tax on property transfers (ITP)
If the owner acts as an individual, the operation would be subject to the Tax on property transfers and Documented Legal Acts. The tax rate applied in Fuerteventura is 6% on the value of the home and the buyer is responsible for paying the tax.
On the other hand, the General Indirect Canary Islands Tax (IGIC) is levied on operations carried out in the business field. Real estate developers that sell newly built homes are required to pay this tax.
Download the deductions for housing in the IRPF, for residents in Fuerteventura
Plusvalia: Tax on the increase in the value of land
It is a municipal tax, which taxes the increase in the value of the land on which the house is located. It is generated when there is a profit, so its payment would not proceed in the event that you sell assuming a loss.
Its calculation depends on the municipality in which it is located.
The subjects of the tax are:
- Sellers, when a home is sold, the seller is obligated to pay the capital gains.
- Beneficiaries of donations, when a property is donated, the recipient of the property pays the capital gain.
- Heirs, when a property is inherited, the heirs pay the capital gains.
The municipal capital gain must be paid within a period of 30 business days from the date of the sale, so you must be agile in this process.
To calculate the municipal capital gain in Fuerteventura: The determination of the taxable base of the tax is based on a system in which the taxpayer can choose the most beneficial between 2 methods:
- “Objective Method“. The cadastral value is maintained as a reference, but the percentages that were used up to now are replaced by maximum coefficients based on the years that have passed since the purchase to the sale of the property, which will be updated annually. The city councils will be able to choose between applying that maximum or lower quotients. On this result, the corresponding percentage of the tax will be applied, which cannot exceed 30%.
- “Real surplus value”. Calculation of the tax is allowed for the real surplus value of the land, that is, for the difference between the purchase price and the sale price.
Do you want to know if you will have to pay capital gains for the sale of your home in Fuerteventura?
Consult with a real estate advisor specializing in the sale of homes in Fuerteventura
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