View Full Version : Capital Gains Tax

06-28-2010, 09:36 PM
Can I just get one thing straight, do you only pay CGT on the profit of your house sale? When I purchased my Villa the exchange rate was great, so now I can sell it for less, ok I will lose a little but not a lot and I have a buyer.

Lawbird Lawyer
06-29-2010, 09:50 AM
That's correct.

You are only liable for CGT on the profit made, no profit no tax.

However, if you happen to be a non-fiscal resident in Spain the buyer will withhold 3% of the sales price and pay it into the Tax office on account of your CGT liability.

If you have not made a profit you are entitled to request a tax rebate on the 3% (plus interests) or part of it. This takes on average between 12-18 months.

Yoirs faithfully,
Raymundo Larraín Nesbitt

09-16-2010, 11:21 AM
I am not sure about that but You can deposit the amount in an account with a public sector bank in accordance with the Capital Gain Account Scheme, 1988. This amount should be later used for purchasing another residential house.

11-04-2010, 10:56 AM
we own a duplex in Fl.we lived in one half for 6 years then turned both sides into rentals. We now need to sell to stave off bankruptcy. How do we calculate the capital gains tax?

11-12-2010, 10:56 PM

You are posting on the wrong forum!!!

A Spanish lawyer is not going to advise you on the tax rules of your home country.

As far as Spain is concerned there is no exchange rate, you purchased a property in Euros and sold it in Euros. You will pay CGT at a rate of 19% without any tax free limit as you are non resident.

For the UK if tax is still owed to the UK tax authorities (as the exchange rate has been favourable as you imply) then the calculation is based on the exchange rate at the date of sale.

So for example if the exchange rate was £1 = 2 Euros at purchase and you bought a property for 200,000 Euros costing £100,000 in real terms to you. You then sell today for 200,000 Euros but the exchange rate is £1 = 1 Euro, then following applies.

1) Under Spanish tax rules there will be no tax liabilty payable in Spain as purchase price = sold price
2) Under UK tax rules you have sold with a gain of £100,000 as purchase price was £100,000 but sold price was £200,000 so you will have to pay CGT on £100,000 to UK tax authorities.