Originally Posted by
Patricia
Hello Jayne,
I believe you are a fiscal resident in Spain, and as such, you must declare your capital gains in your income tax return for 2012 (deadline June-2013).
The fact of having used the profit from the sale to pay off the mortgage does not affect your CGT liability, which is calculated regardless of any debt attached to the property. Using the figures you have provided, see below some rough calculations:
In 2012, as a resident, you pay 21% for the first 6,000 € and 25% for the excess. With this is mind, your total tax liability will be around 2,200 €. Note that I haven't included any selling costs (solicitor, agent, plusvalia tax, etc). If these exsit, and are over 9979.61 €, you will end up paying nothing.
Regards,
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