current taxes for selling a property in Spain
#1
current taxes for selling a property in Spain
anyone up to date or sold recently ?
I think they reduced CGT to 18% same as residents.... at what point is this paid ? I dont think they take a retention on the day of sale if you are resident ? and what if you are not re-investing, leaving the country and closing bank accounts here ?
I think they reduced CGT to 18% same as residents.... at what point is this paid ? I dont think they take a retention on the day of sale if you are resident ? and what if you are not re-investing, leaving the country and closing bank accounts here ?
#2
Forum Regular
Joined: Oct 2007
Location: Rugby
Posts: 290
Re: current taxes for selling a property in Spain
anyone up to date or sold recently ?
I think they reduced CGT to 18% same as residents.... at what point is this paid ? I dont think they take a retention on the day of sale if you are resident ? and what if you are not re-investing, leaving the country and closing bank accounts here ?
I think they reduced CGT to 18% same as residents.... at what point is this paid ? I dont think they take a retention on the day of sale if you are resident ? and what if you are not re-investing, leaving the country and closing bank accounts here ?
http://britishexpats.com/forum/showthread.php?t=558478
#3
Just Joined
Joined: Sep 2008
Location: Marbella
Posts: 3
Re: current taxes for selling a property in Spain
spain, I confirm that Capital Gains Tax for non residents is now 18%, same as for residents. However, non residents will have a 3% withheld by the buyer at the notary when you sign over the property.
If you are a resident, any profit you make will be part of your income for that year, and will attract 18% tax on your yearly tax return. If you cease to be a resident after selling your property, and leave the country, you are still liable for any tax attracted while you were a resident in Spain. The Spanish tax authorities may decide to chase this debt outside Spain if they deem it is worthwhile, but I have never heard of any case were this has happened. Warning: if this amount (debt) exceeds 120,000 not paying CGT will be considered a criminal offence. Also, note that if you plan to conduct any kind of business in Spain in the next four years, the Spanish Taxman can request you to pay this tax then plus fines and legal interests.
If you are a resident, any profit you make will be part of your income for that year, and will attract 18% tax on your yearly tax return. If you cease to be a resident after selling your property, and leave the country, you are still liable for any tax attracted while you were a resident in Spain. The Spanish tax authorities may decide to chase this debt outside Spain if they deem it is worthwhile, but I have never heard of any case were this has happened. Warning: if this amount (debt) exceeds 120,000 not paying CGT will be considered a criminal offence. Also, note that if you plan to conduct any kind of business in Spain in the next four years, the Spanish Taxman can request you to pay this tax then plus fines and legal interests.
#4
Re: current taxes for selling a property in Spain
spain, I confirm that Capital Gains Tax for non residents is now 18%, same as for residents. However, non residents will have a 3% withheld by the buyer at the notary when you sign over the property.
If you are a resident, any profit you make will be part of your income for that year, and will attract 18% tax on your yearly tax return. If you cease to be a resident after selling your property, and leave the country, you are still liable for any tax attracted while you were a resident in Spain. The Spanish tax authorities may decide to chase this debt outside Spain if they deem it is worthwhile, but I have never heard of any case were this has happened. Warning: if this amount (debt) exceeds 120,000 not paying CGT will be considered a criminal offence. Also, note that if you plan to conduct any kind of business in Spain in the next four years, the Spanish Taxman can request you to pay this tax then plus fines and legal interests.
If you are a resident, any profit you make will be part of your income for that year, and will attract 18% tax on your yearly tax return. If you cease to be a resident after selling your property, and leave the country, you are still liable for any tax attracted while you were a resident in Spain. The Spanish tax authorities may decide to chase this debt outside Spain if they deem it is worthwhile, but I have never heard of any case were this has happened. Warning: if this amount (debt) exceeds 120,000 not paying CGT will be considered a criminal offence. Also, note that if you plan to conduct any kind of business in Spain in the next four years, the Spanish Taxman can request you to pay this tax then plus fines and legal interests.
thanks very much, thats really helpful
#5
Re: current taxes for selling a property in Spain
Did we clear up for certain the tax position if you are over 65 with a link to the relevant law or tax office legislation.
#6
Re: current taxes for selling a property in Spain
spain, I confirm that Capital Gains Tax for non residents is now 18%, same as for residents. However, non residents will have a 3% withheld by the buyer at the notary when you sign over the property.
If you are a resident, any profit you make will be part of your income for that year, and will attract 18% tax on your yearly tax return. If you cease to be a resident after selling your property, and leave the country, you are still liable for any tax attracted while you were a resident in Spain. The Spanish tax authorities may decide to chase this debt outside Spain if they deem it is worthwhile, but I have never heard of any case were this has happened. Warning: if this amount (debt) exceeds 120,000 not paying CGT will be considered a criminal offence. Also, note that if you plan to conduct any kind of business in Spain in the next four years, the Spanish Taxman can request you to pay this tax then plus fines and legal interests.
If you are a resident, any profit you make will be part of your income for that year, and will attract 18% tax on your yearly tax return. If you cease to be a resident after selling your property, and leave the country, you are still liable for any tax attracted while you were a resident in Spain. The Spanish tax authorities may decide to chase this debt outside Spain if they deem it is worthwhile, but I have never heard of any case were this has happened. Warning: if this amount (debt) exceeds 120,000 not paying CGT will be considered a criminal offence. Also, note that if you plan to conduct any kind of business in Spain in the next four years, the Spanish Taxman can request you to pay this tax then plus fines and legal interests.
#7
Just Joined
Joined: Sep 2008
Posts: 3
Re: current taxes for selling a property in Spain
CGT at 18% both for residents and Non Residents. 3% Withholding for Non Residents that will be offset against the 18% CGT payable. In current market conditions is unlikely for many people to make any gains, therefore is worth considering a CGT claim to calculate if withholding tax has been overpaid. Do not forget plusvalia municipal, payable by the vendor in most cases. Visit www.taxprecision.com for last info on this topic.
#8
Re: current taxes for selling a property in Spain
CGT at 18% both for residents and Non Residents. 3% Withholding for Non Residents that will be offset against the 18% CGT payable. In current market conditions is unlikely for many people to make any gains, therefore is worth considering a CGT claim to calculate if withholding tax has been overpaid. Do not forget plusvalia municipal, payable by the vendor in most cases. Visit www.taxprecision.com for last info on this topic.
#9
Banned
Joined: Mar 2007
Location: inaskip
Posts: 1,380
Re: current taxes for selling a property in Spain
what is this tax thing.I have heard it maney times.income tax.car tax.I used to hear it in the uk.......what is it
#13
Forum Regular
Joined: Jan 2005
Location: west sussex and ayamonte,spain
Posts: 86
Re: current taxes for selling a property in Spain
The 18% tax for your tax returns is only on a property deemed as a second residence not your principal residence. If it is your principal residence and you are re-investing in Spain and the amount that you are buying your new property for, is the same or more than what you sold your previous property for then you pay nothing. You would only pay on your principal residence if you were taking the money out of Spain. Any taxes owed are paid on the following years tax returns.
iant
#14
Re: current taxes for selling a property in Spain
You can download a copy here.
http://sid.usal.es/idocs/F3/LYN10170/3-10170.pdf
It makes wonderful bedtime reading
#15
Re: current taxes for selling a property in Spain
Just out of interest, where in Spanish tax legislation does it actually say that gains from the sale of one's principal residence are taxable if taken out of Spain, even when proof can be provided that the sale proceeds have been reinvested in a new principal residence abroad?
iant
iant