SOBE KNOWLEDGE
Property Flip Calculator
See what remains between the price you pay and the price you assume you can sell for — after acquisition costs, renovation, holding expenses, financing, selling costs and estimated tax.
The property
Resale: ITP plus legal, notary, registry and bank costs.
Renovation and project
Holding costs
Financing
Sale
Tax treatment depends on ownership structure, invoices, residency and deductible costs. This is an estimate, not tax advice.
The spread between purchase and sale price is not your profit
Every cost between the two prices belongs in the calculation.
The headline difference is reduced by purchase taxes, legal and registry costs, renovation, project delays, finance, agency commission and estimated tax. This calculator keeps each item visible so the result reflects what the numbers show rather than only the two headline prices.
Why project duration changes the result
A delay adds costs without adding value automatically.
Every additional month can add community fees, utilities, insurance, security, maintenance and mortgage interest. It also lowers the annualised return because the same estimated result takes longer to achieve, while the opportunity cost of committed capital continues.
Break-even is the first number to test
Before estimating upside, calculate the sale price that only gets your money back.
A correct break-even price must account for percentage-based selling costs. When agency commission is a percentage of the sale price, simply adding the costs understates the sale price needed to recover the project outlay.
Frequently asked questions
What costs should be included in a property flip?
Include the purchase price, acquisition taxes and professional costs, renovation and furnishing, holding expenses, financing costs, selling costs and an estimated tax calculation. The result is only as complete as the assumptions entered.
Is the difference between purchase price and sale price the profit?
No. The difference is reduced by every cost incurred between acquisition and completion of the sale, including purchase costs, renovation, holding expenses, finance, selling costs and estimated tax.
How are acquisition costs calculated in Andalucía?
For a resale property the estimate uses 7% ITP. For a new build it uses 10% IVA and 1.2% AJD. Both add estimated lawyer, notary, land-registry and bank or miscellaneous costs. Exact costs depend on the transaction.
Does mortgage principal count as a flip expense?
No. Principal is repayment of borrowed capital, not an economic project expense. Mortgage interest and financing fees are costs; the outstanding principal is repaid from sale proceeds and is shown separately.
How is the break-even sale price calculated?
Fixed project costs are divided by one minus the percentage-based sale-cost rate. This accounts for the fact that agency commission increases as the sale price increases.
Are renovation costs deductible for capital-gains tax?
Not automatically. Documented capital improvements may increase the acquisition value, but furniture, repairs or unsupported costs may be treated differently. Ownership structure, invoices and local tax rules matter.
What is the 3% withholding for non-resident sellers?
It is an advance payment made by the buyer against the non-resident seller’s final Spanish tax liability. It is not an additional tax and is not added to the estimated capital-gains tax.
Is the expected sale price a SOBE Invest forecast?
No. It is your assumed sale price. The calculator shows an estimated result based on the assumptions you enter and does not predict or guarantee a sale price or return.
Related
General information only — not financial, tax or legal advice, not a valuation, not a forecast and not an offer. Results are estimated scenarios based entirely on the assumptions entered. Tax treatment, deductible costs, lending criteria and transaction costs vary by person, property and ownership structure and can change; verify the figures with qualified advisers before making a decision.