Dondurma

I have read that if you are over 65 and have been living as Spanish resident in your home for over 3 years you are exempt from CGT-

I take it if the house is in joint names and your spouse is under 65 they would be liable for 50% of the CGT?

Any thoughts

Loafing Along

1. If you are over 65 and sell your property there should be no CGT. You need to have lived in it for a minumum of three years before the sale. In 2014 the government introduced new legislation allows you to avoid paying capital gains tax on other assets. If you pay the proceeds from their sale within six months into an annuity type scheme, drawing an income over time. The limit is €240.000,-
A person under 65 years will still pay, so in your case in theory your spouse is liable for 50%.

2. Separately if you sell your main residence you have two years in which to reinvest in another one without paying any capital gain

Dondurma

Thanks for that but my question was rd the joint names. If the other party is under 65 do they pay half the CGT

Loafing Along

Yes, sorry edited my post to answer that

Dondurma

Cheers Loafing, appreciate it

Is CGT treated as a separate tax or is it treated in conjunction with your overall tax liability- in other words if it was within your allowance would you not pay at all ( someone with no income) or is it treated totally seperately

Loafing Along

The sale should be declared on the annual Tax Declaration IRPF although, in your case there is no tax to pay. Separately there will be Municipal taxes and these cannot be avoided "Pusvalia Municipal" which is calculated on the value of the land and its increae in value during your ownership.