Selling a property involves considering various taxes that can significantly impact the profits obtained. Although the process may seem complex, understanding the Personal Income Tax (IRPF), the Municipal Capital Gains Tax (Plusvalía Municipal), and the Property Tax (IBI) is essential to optimize the transaction. At Carabassí Casas, we break down these taxes and provide key strategies to reduce their impact.IRPF: Personal Income TaxThe IRPF applies to the capital gain generated by the sale. This gain is the difference between the purchase price and the sale price, adjusted for improvements and associated expenses such as notary and registry fees. The rates range from 19% to 23%, depending on the amount of the gain.It is possible to reduce this tax through:Deductions for documented renovations and improvements.Exemptions when reinvesting in another primary residence within the legal timeframe.Municipal Capital Gains Tax (Plusvalía Municipal)This local tax is calculated based on the increase in the value of the land from the time of purchase to the sale, using coefficients established by each municipality. The amount can represent between 5% and 30% of the increase in the cadastral value of the land. It is essential to verify updated coefficients and explore possible exemptions if there was no increase in value.Property Tax (IBI)The IBI is an annual tax based on the cadastral value of the property. Before selling, ensure that all payments are up to date, as this streamlines the process and avoids delays.Strategies to Minimize TaxesSale Planning: Selling at the right time can reduce IRPF.Reviewing Cadastral Value: Adjusting the cadastral value can lower the Municipal Capital Gains Tax.Exemptions for Seniors: If you are over 65 and have owned the property for three years, you may be exempt from IRPF.Selling a property involves various tax obligations that can be strategically managed to maximize profits. Staying informed about current regulations and seeking proper advice are key to minimizing associated costs and optimizing your tax situation.