Spanish Capital Gains Tax Raise to 19% Goes Unnoticed
Spain’s Government has raised Capital Gains Tax (CGT) for both residents and non-residents to 19% as from the 1st of January 2010, which effectively means any property sold on as from the said date will attract CGT at 19%. This tax change seems to have gone blissfully unnoticed by the majority of people, or this is what you realise when you read what the so-called experts write on the many different expat forums available.
After a protracted process grounded on discrimination, the European Commission forced Spain to equate the Capital Gains Tax for both residents and non-residents alike leaving it at 18% as from the 1st of January 2007. Previously it stood at 35% for non-residents and 15% for residents.
This new tweak is related to Spain’s widespread efforts to prop up its dwindling coffers in view of its beleaguered Economy. This policy of increasing taxes in the aftermath of a property bubble has come under heavy criticism by reputed financial experts and may even hamper an early recovery as well as possibly incentivizing under declaring.
The following table sums up CGT amendments over the last years:
| Until the 31-12-2006 | 2007-2009 | As from 01-01-2010 | |
| Tax rate | 35% | 18% | 19% |
For those who are still sceptical, and doubt wether this is true or not, I refer you to the official Modelo 212 instructions (http://www NULL.agenciatributaria NULL.es/AEAT/Contenidos_Comunes/La_Agencia_Tributaria/Modelos_y_formularios/Declaraciones/Modelos_200_al_299/212/Instrucciones/instr_mod212 NULL.pdf) (PDF – Spanish) for further confirmation.
Related article: Taxes when Selling Spanish Property (http://www NULL.marbella-lawyers NULL.com/articles/showArticle/taxes-when-selling-spanish-property) – 2nd May 2002
You state that the capital gains tax for a resident is 19%, but many other websites (eg wikipedia) say that this is only for the first 6,000 euros of gain, and that after that it is 21%.
The reference that you give (to form 212) is only for non-residents.
Can you please clarify the situation for residents?
Dear Stephen
Both are correct, it’s 19% for non residents and residents declaring a profit under 6000 €, and 21% for residents declaring more than 6000 €.
This is mentioned in Law 26/2009.
Non Residents: http://noticias.juridicas.com/base_datos/Fiscal/l26-2009.t6.html#a73 (http://noticias NULL.juridicas NULL.com/base_datos/Fiscal/l26-2009 NULL.t6 NULL.html#a73)
Residents: http://noticias.juridicas.com/base_datos/Fiscal/l26-2009.t6.html#a69 (http://noticias NULL.juridicas NULL.com/base_datos/Fiscal/l26-2009 NULL.t6 NULL.html#a69)
Sorry for the confusion.
I am resident in Spain and sold my house and bought in UK and will be moving there to live . It will me my one and only home. Will I have to pay CGT on the sale of my Spanish property, even though all the money was used to buy a home in the UK ?
Dear Marie,
Please see the following link:
http://belegal.com/forums/showthread.php?2300-Capital-gains-tax-rollover-relief (http://belegal NULL.com/forums/showthread NULL.php?2300-Capital-gains-tax-rollover-relief)