When you sell your home, the number that matters most isn't the sale price — it's the amount that actually lands in your bank account after all costs are paid. This guide walks through every cost you need to account for.
The Real Calculation: From Sale Price to Net Proceeds
Here's the full waterfall of deductions:
Sale Price − Agent commission (+ VAT where applicable)
− Early repayment penalty (if applicable)
− Notary/legal fees for mortgage cancellation − Remaining mortgage balance = Net Proceeds (cash in your account)
Note: Capital gains tax is a separate calculation — use our Capital Gains Calculator for that.
Agent Commission: The Biggest Cost
Real estate agent commissions vary significantly by country:
| Country | Typical Commission | VAT | Total Cost (€300k sale) |
|---|---|---|---|
| Portugal | 3-5% | 23% on commission | €11,070 - €18,450 |
| Spain | 3-5% | 21% on commission | €10,890 - €18,150 |
| Germany | 3-7% (split) | 19% on commission | €5,355 - €12,495 (seller share) |
| France | 3-8% (negotiable) | 20% on commission | €10,800 - €28,800 |
| UK | 1-3% | No VAT | €3,000 - €9,000 |
| US | 5-6% (total) | No VAT | €15,000 - €18,000 |
In Portugal, the standard commission is 5% + 23% VAT = 6.15% of the sale price. On a €300,000 sale, that's €18,450 — a significant sum.
Early Repayment Penalty
If you have a mortgage and sell before it's fully paid, you'll need to repay the outstanding balance. Many mortgages also charge a penalty for early repayment:
| Country | Fixed Rate Penalty | Variable Rate Penalty |
|---|---|---|
| Portugal | 2% of outstanding balance | 0.5% of outstanding balance |
| Spain | 0.5-1.5% (depending on contract) | 0.25-0.5% |
| Germany | Vorfälligkeitsentschädigung (complex calculation) | None |
| France | 3% or 6 months' interest (lower) | 3% or 6 months' interest |
| UK | 1-5% (ERC during fixed period) | None |
| US | 2-4% (first 3-5 years) | None |
In Portugal, if you have a variable-rate mortgage of €150,000 and sell, the penalty is €750 (0.5%). For a fixed-rate mortgage, it's €3,000 (2%).
Mortgage Cancellation Costs
Beyond the penalty, there are administrative costs to formally cancel the mortgage:
- Notary fee for mortgage cancellation deed: €150 - €400
- Land Registry cancellation fee: €100 - €250
- Bank administrative fee: €0 - €200
Total: approximately €250 - €850 depending on the country and bank.
Worked Example: Selling a €300,000 Property in Portugal
| Item | Amount |
|---|---|
| Sale price | €300,000 |
| Agent commission (5% + 23% VAT) | −€18,450 |
| Early repayment penalty (variable, 0.5%) | −€750 |
| Mortgage cancellation costs | −€500 |
| Outstanding mortgage balance | −€120,000 |
| Net proceeds | €160,300 |
The seller receives €160,300 in cash — not €300,000. This is the number that matters for planning your next purchase.
What About Capital Gains Tax?
Capital gains tax is calculated separately and depends on:
- How long you've owned the property
- Whether it's your primary residence
- Your tax residency status
- The country's specific rules
For a complete capital gains calculation, use our Capital Gains Tax Calculator.
Planning Your Next Purchase
Knowing your net proceeds is critical for planning your next property purchase. If you're buying and selling simultaneously, you need to know exactly how much cash you'll have available for the down payment on your new home.
Use our Home Sale Proceeds Calculator to calculate your exact net proceeds based on your specific situation — sale price, commission rate, mortgage balance, and country-specific costs.
How Much Will I Net from Selling My Home? Complete Guide
Selling a home involves far more costs than most people anticipate. Understanding all the costs before putting your property on the market is essential to avoid unpleasant surprises on completion day.
The Costs of Selling a Home
1. Estate Agent Commission
The estate agent's commission is typically the largest cost of selling. Rates vary by country and agent, typically ranging from 1-6% of the sale price.
2. Capital Gains Tax
If the sale price exceeds the acquisition cost (adjusted for inflation and deductible expenses), a capital gain arises that may be subject to income or capital gains tax.
Deductible expenses typically include:
- Original acquisition cost (inflation-adjusted where applicable)
- Transfer taxes and legal fees paid on acquisition
- Renovation costs with receipts (within a defined period)
- Agent commission paid on sale
3. Early Mortgage Repayment Penalty
If the property has an active mortgage, early repayment typically incurs a penalty:
- Variable rate: 0.5-1% of outstanding capital
- Fixed rate: 1-5% of outstanding capital (varies by country and contract)
4. Legal and Administrative Costs
- Conveyancing/notary fees: €500-2,000
- Mortgage discharge registration: €200-500
- Energy Performance Certificate (if not current): €100-300
Complete Calculation Example
| Item | Amount |
|---|---|
| Sale price | €300,000 |
| Outstanding mortgage | -€150,000 |
| Agent commission (3% + VAT) | -€11,070 |
| Mortgage penalty (0.5%) | -€750 |
| Mortgage discharge | -€300 |
| Net proceeds before tax | €137,880 |
| Capital gains tax (estimate) | -€8,000 |
| Final net proceeds | ~€129,880 |
Use our Home Sale Calculator to calculate the exact net proceeds from your sale, and the Capital Gains Calculator to estimate the tax payable.