View Full Version : Capital gains due when selling a property puchased in feb 1994

04-24-2012, 10:05 AM
Before I ask the question let me say how pleased I was to find this site. Thank you to everyone involved in replies. Thats enough of the grovelling, now heres my question !

I purchased an apartment in Feb 1994 for 70,000 ptas. Costs were 812 ptas which included a 37 euro penalty because the purchase price was not accepterd and they calculated it should have been 7,800 ptas.

I now hope to sell at a declared value of 150,000 Euros less costs.

Can you give me an idea of tax implications please ? I understand the 11.1% allowance may be due for just 2 years.

05-04-2012, 10:53 AM
Dear Norfolk

Sorry for the late reply. I will try to provide an answer that lives up to your expectations!

I have gone through your figures and I have realised that the amounts in pesetas make little sense. In 1994 you probably spent 7 million pesetas for an apartment, instead of 70.000 pesetas which amounts to 420 €. The costs were probably 812.000 pesetas.

With this in mind, I include below the calculations:

Date of Purchase 01/02/1994
Date of Sale 15/05/2012
Purchase Price 42,000.00 €
Purchase Costs 4,880.00 €
Sale Costs 10,000.00 €
Selling Price 150,000.00 €

Updated Purchase Price 60,512.70 €
Coefficient. 1.2908
Capital Gains 89,487.30 €
Days Between Sale and Purchase 6679
Days Between Purchase and 19/01/2006 4371
Capital Gains Subject to Reduction 58,564.00 €
Number of years for the calculation of the reduction 3
Reduction resulting of applying the inflation coefficients 6,506.46 €
Reduced Capital Gains 72,980.84 €
Capital Gains Tax Rate 21%

Capital Gains Tax 15,325.98 €

I have included a round figure of 10.000 € having to do with selling costs, which include agent fees, solicitor fees and Town Hall Plusvalia Tax (of course, this is approximate and should be calculated properly by your fiscal representative/lawyer). Note that you can offset any other costs involved with the purchase and sale of the property, in addition to any refurbishment carried out (receipts should be available).

I hope it helps. Please let me know if you need further assistance.

Kind regards,