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Thread: Taxes when Selling Spanish Property

  1. #81
    GCKB
    Guest

    Default Taxes when Selling Spanish Property

    My husband and I are divorcing and I want to transfer ownership of our Spanish property to him. How do I go about this?

  2. #82
    tom clarke
    Guest

    Default Taxes when Selling Spanish Property

    I sold a flat in 2005 and paid no tax on the sale. I was considered a resident and intended to roll over to a new property. I then left Spain. I guess this makes me a classical tax absconder. I now wish to return and buy another property. Am I still liable for the GST 7 years later?

  3. #83
    debra coates
    Guest

    Default Taxes when Selling Spanish Property

    we are just selling an apt that we have owned since 1988, i understand that we will get a discount on cgt will that discount be deducted when we are at the notary, im worried ill have to pay the full 18% and then have to wait to get my dicount amount back at a later date??

  4. #84
    Senior Member
    Join Date
    Oct 2008
    Posts
    139

    Default

    Dear Debra

    Capital Gains Tax is paid on any profit made on the sale of your property, and is currently fixed at 19% on the profit made. In the current economic climate, not many sellers are making any profit, and therefore the sale will attract no Capital Gains Tax. However, if you are a non-resident, you will have a 3% of the purchase price automatically withheld by the buyer at the Notary. You are eligible for a full refund of this 3% if you are up to date with your taxes at the Tax Office (namely Non-Residents Imputed Income Tax). The refund takes around 6 months to be issued. Your lawyer should be able to take care of all the paperwork to request this full refund. Also, watch out for the PlusvalĂ*a Tax (IIVTNU), which can amount to a substantial figure if the property was bought in 1988.

    Regards
    Antonio Flores
    Abogado/Lawyer
    Lawbird Legal Services | Contact Me
    Instagram | Read my Blog

  5. #85
    Senior Member
    Join Date
    Oct 2008
    Posts
    139

    Default

    Hello GCKB

    I’m sorry that your marriage didn't work and that you are divorcing (I hope it’s amicable). Regarding your question, the most tax efficient way of transferring your share of the property on to your husband is that you conduct a Dissolution of joint property Ownership, which attracts 1% of the property value as opposed to 7-10% Transfer Tax (depending on the value of the property) you would have to pay if you sold your share. I recommend that you contact your solicitor for further information on how to proceed.

    Regards
    Antonio Flores
    Abogado/Lawyer
    Lawbird Legal Services | Contact Me
    Instagram | Read my Blog

  6. #86
    Senior Member
    Join Date
    Oct 2008
    Posts
    139

    Default

    Hello Tom

    I’m afraid I cannot give you a straight answer to your enquiry, as I would need further information before I can determine what your legal situation is. If you are indebted with the Spanish Taxman or not, depends on whether you were formally requested in writing by the Tax Office to submit and pay your Capital Gains Tax forms within the 4 years and 3 months set by the statute of limitations. If this didn’t happen, your debt has expired and the Taxman will not be able request from you this amount.

    I recommend that you instruct your solicitor to request from the Tax Office a report on your current tax situation. Should you require help with this, please let me know.

    Regards
    Antonio Flores
    Abogado/Lawyer
    Lawbird Legal Services | Contact Me
    Instagram | Read my Blog

  7. #87
    Senior Member
    Join Date
    Oct 2008
    Posts
    139

    Default

    Hello meg

    Sorry for the late reply. I hope that you have received the refund by now, as 18 months is indeed a long time. If you have lost faith in your current lawyers, perhaps you should personally request from the Tax Office a report on your legal situation (what forms have been submitted and whether the refund has already been issued or not). If you are unsure how to go about this, a Fiscal Advisor should be able to carry out this work for you for a small fee.

    Regarding the PlusvalĂ*a Tax, I'm sorry you have been hit twice. Spanish law indeed mentions it's the vendor who pays it, but can be agreed between the parties for the buyer to take care of it. This should have been mentioned by your lawyer when you purchased the property (it's normally a clause in the private purchase contract). If this was not the case, and you feel misrepressented, you can always try to submit a formal complaint to the local Law Association.

    Let me know if you need further help.

    Regards
    Antonio Flores
    Abogado/Lawyer
    Lawbird Legal Services | Contact Me
    Instagram | Read my Blog

  8. #88
    Rene Koppen
    Guest

    Default Taxes when Selling Spanish Property

    Hi, we bought a house from BBVA 2 weeks ago. The entire deal was done according correctly but because of others reasons we are no longer able to live in the house. BBVA has agreed to swop the house with another BBVA owned house to an equal price. We already paid the 7% transfer fee and my question is whatever the Transfer Fee can be swoped or do we again have to pay another 7% Transfer Fee?

  9. #89
    peebee
    Guest

    Default Taxes when Selling Spanish Property

    An elderly friend has an apartment in La Manga which she wishes to sell. She is resident in the UK.
    Her husband died in August 2009 with whom she had joint ownership of the apartment which they had owned since 1995 and they lived in the apartment for 6 months of every year untill his death.
    What does she require in the way of paperwork to sell the apartment ?. I assume deeds, death certificate, passport.

  10. #90
    philip
    Guest

    Default Taxes when Selling Spanish Property

    i bought a property in 2002 for 212,000Euro's i now want to sell, it is worth circa euro's 450,000. I am a non resident.
    I have spent circa 60,000 euro's on building work , bathroom , kitchens etc . I was advised if I held it for more than 10 years there was a tax advantage - is this correct? Having raed your site it appears i will staill pay 19% on teh gain and 3 % retention> can you clarify.

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