Taxes when Selling Spanish Property

[tricia]

Do all pensioners have same rights when selling i.e Spanish and English etc?
Does a pensioner pay tax when selling a property?
If a pensioner has residencia, PADRON, NIE is this sufficient not to pay tax?
Do they need to opt out of Ingles tax system and become fiscal tax resident in Espana?
Kind regards

[Lawbird Lawyer]

Dear Madam,

Owners > 65 years old qualify for a CGT tax exemption on selling their primary dwelling in Spain (must be their main residence, not a second residence).

Owners < 65 y.o. qualify for a roll-over benefit. They will not pay CGT taxed at 18% within the following 2 years subject to them reinvesting the sales proceeds in another property in Spain (or elsewhere) which must be used as their main residence (they must have lived in it the 3 previous years and wil lbe required to prove it providing conclusive evidence i.e. utility bills).

On you speding more than 183 days in Spain you will become a fiscal resident and are subject to be taxed on your Worlwide income. This includes your UK pension, yes.

A pensioner pays taxes on selling property, yes, Capital Gains Tax and Plus ValÃ*a tax with the exception above.

Having residencia, NIE and Padrón makes no difference in you being liable to pay taxes on selling property. It will however affect your IHT bill. Being tax resident in Spain will make it unnecessary the buyer retains 3% of the sales proceeds on account of your CGT liability.

In any case foreigners who live in Spain should join the Padrón:


Embassy encourages foreigners to register on local ‘padrón’

Benefits of registering include tax reductions, access to social care and discounts
26.08.09 -

Yours faithfully,
Raymundo LarraÃ*n Nesbitt