Where? (Location)
0000
Results

Property seller’s guide (2)

Notice: Rimontgó recommend specialist advice, not only in legal and juridical aspects, but also fiscal and other areas related to the real estate sector. To that effect, our clients may get in contact with us if they want to ask for our database of professionals who can offer them personal care.

Taxes on property and real estate sale in Spain

TAXATION OF THE SALE PROPERTY

1.The transferor is a resident particular individual.

2.The transferor is a non-resident.

1.TAXATION ON THE SALE OF PROPERTY

1.1 The transferor is a resident particular individual

Taxation on IRPF

Any returns obtained by the transfer of real estate, which is not considered as economic activity, for residents, tax on the first €6,000 of capital gain at a fixed rate of 21%, up to €24,000 at 25% and the rest at 27%.

In transfers, the amount of gain or loss is calculated by subtracting from the transfer value (minus costs and taxes linked to the transfer and which are the transferor’s obligations) the purchase price (plus expenses and taxes linked to the purchase).

In the case of real estate, once the purchase price has been agreed, the value must be updated by the application of the rates established by the Law of General Budget corresponding to each fiscal year.

It is remarkable that, in respect of capital gains derived from the purchase of real estate prior to 31 December 1994, the new regulations, in one hand, set out a temporary regime which entails the disappearance of the so-called “dejection coefficient” (which reduced the taxing of capital gains) and on the other hand, consolidate the reduction applicable to capital gains generated before 20 January 2006.

Taxation on the Municipal Capital Gains

This is a municipal tax which taxes the increase in value of urban plots when such increase is the consequence of the transfer of the ownership in any way and the transfer or obtaining of in rem rights or linked to such property.

This increase is calculated with an annual percentage applied to the value of the plot at the time of payment of the tax, a percentage agreed by each Town Hall. The increase obtained by such calculation taxes a rate which can not exceed 30%.


1.2 The transferor is a non-resident.

Taxation on Income Tax for Non-Residents.

In the case of capital gains derived from the transfer of real estate property located in Spain, in order to establish the taxable income, the regulations of the LIPRF, with some exceptions. In general terms, the base is calculated by subtracting from the transfer value the purchase price. When capital gains result from the purchase with no cost (free), the amount will be considered as the normal value market of the purchased asset.
Capital gains tax 21%.
In the case a transfer where the property owner is a non-resident, the purchaser will be obliged to withhold and remit 3% of the agreed purchase price, as per the tax for which the non-resident is liable.
To calculate the taxable debt it will be possible to deduct all amounts withheld or income to account offset.

Taxation on the Municipal Capital Gains

This is a municipal tax which taxes the increase in value of urban plots when such increase is the consequence of the transfer of the ownership in any way and the transfer or obtaining of in rem rights or linked to such property.
This increase is calculated with an annual percentage applied to the value of the plot at the time of payment of the tax, a percentage agreed by each Town Hall. The increase obtained by such calculation taxes a rate which can not exceed 30%.

Capítulos: 1 – 2

Remember we also have an online form you can use to contact us if interested in selling your property.