A. Particularly on your property, you will have to pay a percentage of 35% on the profit you make, which is based on the difference between what you paid originally and what you sold it for.
There is the possibility to reduce your exposure to this tax, and even a total exemption if you have had the property for more than ten years as owner, as of the 31st of December 1999.
It works as follows: For every year you have owned you property after the first two as from the 31st of December 1996, that is, 31st of Dec. 1994, you are entitled to a reduction of 11.11% on your profit. If you have purchased your property in 1990 will be entitled to four years of reduction, or 44,44% on the net profit you have made.
The net profit is the gross profit minus the costs. You can add on top of the original purchase price the transfer tax paid then, the notary and land registry fees, lawyer´s fee, and estate´s agents fees, thus reducing you final profit.
Finally, there is also a table of inflationary indexes, which you apply to your original purchase price to bring it up to date in today´s inflated pesetas.
We recommend you ask your lawyer to do the mathematics before you sell your property in order that you can have an idea of the tax you will be paying.
