How Much Does It Cost to Sell a Property in Madrid: All Expenses Explained

Before you sign anything, you need to know how much selling will cost you. Not the sale price — you already know that. What many homeowners fail to calculate is how much is lost along the way to taxes, fees, and services.

Here is the real breakdown.

The seller’s costs in Madrid

When you sell a property in Madrid, these are the items that come out of your pocket:

1. Plusvalía municipal (local capital gains tax)

This is the tax levied by the Madrid City Council on the increase in land value from the time you purchased until the time you sell. It is calculated on the cadastral value of the land (not the sale price), applying coefficients that depend on the number of years of ownership.

Example: For an apartment in Salamanca with a cadastral land value of €200,000 purchased 10 years ago, the plusvalía municipal can be in the range of €8,000-€15,000.

Since the Constitutional Court ruling of 2021, if there is no real gain (you sell for less than you paid), you do not owe this tax. But you must prove it.

2. IRPF (income tax) — Capital gain

This is usually the largest expense. The Spanish tax authority taxes the difference between the purchase price (plus acquisition costs) and the sale price (minus selling costs).

The tax rates in 2025:

• Up to €6,000 in gains: 19%
• From €6,000 to €50,000: 21%
• From €50,000 to €200,000: 23%
• From €200,000 to €300,000: 27%
• Over €300,000: 28%

Example: You bought for €500,000 and sell for €800,000. Net gain (after expenses): ~€270,000. Approximate IRPF: ~€62,000.

Reinvestment exemption for primary residence: If you sell your primary residence and reinvest the full amount in another primary residence within 2 years, the gain is exempt. This is the most powerful exemption available, and many homeowners fail to take advantage of it due to lack of awareness.

Exemption for those over 65: If you are over 65 and sell your primary residence, the gain is exempt with no need to reinvest.

3. Notary fees

The seller pays the plusvalía de obra nueva (if applicable) and the mortgage cancellation deed (if there is one). The costs of the purchase deed are normally paid by the buyer.

If you are cancelling a mortgage: between €300 and €800 for the notarial cancellation costs.

4. Mortgage cancellation

If you have an outstanding mortgage, you need to cancel it. There are two costs:

• Outstanding debt certificate: issued by the bank free of charge.
• Early repayment fee: depends on your contract. Mortgages signed after 2019 have a legal maximum of 0.15% during the first 10 years (variable rate) or 2% during the first 10 years (fixed rate).

5. Estate agent commission

If you work with an estate agency, the typical commission in Madrid ranges between 3% and 5% plus VAT on the sale price. In the high-end segment, where transactions require more specialisation and resources, the commission is justified by the value delivered: precise valuation, buyer network, full-service management, and professional negotiation.

6. Energy performance certificate

Mandatory for selling. It costs between €80 and €150 depending on the size of the property. If you do not have one, you need it before listing the property for sale.

7. Cédula de habitabilidad / ITE (habitability certificate / building inspection)

In Madrid, the cédula de habitabilidad (habitability certificate) is not mandatory for the sale, but the ITE (Inspección Técnica de Edificios — technical building inspection) is required for buildings over 30 years old. If the building does not have an up-to-date ITE, it can be a problem.

Full example: apartment in Chamberí

• Purchase price (2015): €450,000
• Sale price (2025): €680,000
• Capital gain: ~€210,000

Item	Estimated amount
Plusvalía municipal	€9,500
IRPF (capital gain)	€47,800
Mortgage cancellation (notary)	€500
Early mortgage repayment fee	€300
Energy performance certificate	€120
Estate agent commission (4% + VAT)	€32,912
Total costs	~€91,132
Net to the owner	~€588,868

The owner takes home 86.6% of the sale price. That is the reality.

What you can do to reduce costs

1. Take advantage of the reinvestment exemption if you are buying another primary residence.
2. Add all acquisition costs to the purchase price (notary, registry, VAT or transfer tax, renovation with invoices) — this reduces the IRPF tax base.
3. Negotiate the early repayment fee with your bank if you are cancelling a mortgage.
4. Plan the sale from a tax perspective with an advisor before signing — not after.

Calculate your exact costs

We have built a calculator that lets you simulate all the selling costs for your specific situation. Enter the purchase price, sale price, and year of acquisition, and it shows you the full breakdown with the net amount you would take home.

Use the cost calculator →