Taxes when Selling Spanish Property

[Patricia]

Hello Peebee,

Sorry for the delay in responding.

She must have full ownership of the property to be able to sell it, that is, that it must be registered in her name, and that can only be done through an inheritance process which you do not mention if it has taken place.

Once confirmed the apartment is in her name, the selling process is quite simple and the aid of a Spanish solicitor will be required to handle the purchase and make sure all the steps are followed as well as the corresponding taxes paid.

You may find interesting reading an article written by one of our expert lawyers about the Capital Gains Tax: http://belegal.com/wordpress/spanish...oes-unnoticed/

We can offer our assistance in this case, either by checking the Estate has been transferred or handling the selling process, so please feel free to email me on patricia at Lawbird.com if you wish to discuss the matter further.

Regards,

[PeeBee]

Hi Patricia,

Thanks for the advice.
My friend has flown to Murcia today so no doubt she will be attempting to sort things out.
Unfortunately I couldnt follow your link as it presents a 404 error (but with a nice explanation) .

[Marta]

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.

Hello Philip,

Enclosed is a preliminary table with your capital gains calculation. It is only for guidance as the costs involved in your purchase and sale would need to be taken into account to obtain a correct figure.

Date of Purchase 01/01/2002
Date of Sale 01/04/2012
Purchase Price 212,000.00 €
Purchase Costs 76,960.00 €
Sale Costs 0.00 €
Selling Price 450,000.00 €

Updated Purchase Price 338,574.43 €
Coefficient. 1.1717
Capital Gains 111,425.57 €
Capital Gains Tax Rate 21%

Capital Gains Tax 23,399.37 €

[Patricia]

Hello Peebee,

Please try now: http://belegal.com/wordpress/spanish...oes-unnoticed/

Also, please note that the percentage mentioned in the article has been increased to 21% begining of this year. You can read more detailed information on the instructions issued by the Tax Office ( page 8 ): https://www.agenciatributaria.gob.es...cciones210.pdf

Regards,

[Patricia]

Mr. Koppen,

You should not be required to pay transfer tax for a property you did not buy in the end, that is, you cannot be taxed twice.

However, the limited information you provide prevents us for giving a more detailed advice. We are unsure if you mean you signed the purchase deeds or only the reservation contract. If you signed the deeds, the swap can only be possible if there is an additional swap deeds, that will certainly entail taxes that, initially, BBVA will have to assume. As it is swap operation, two transfer taxes are to be applied.

Regards

[Africa]

I am trying to sell my propety in Spain, because I have to move to another palce for work, however I am resident there, so I was wondering what taxes and which porcentage I will have to pay.

Thank you

[pauline overton]

Dear Sir, Could you please help? My daughter is at her wits end.
She purchased a property some 8 years ago with a friend when it was 94.00,00 Euros but there is 64.000,00 on the escertara with a girl friend. Three years ago my daughter found it difficult to pay the mortgage and went to see the bank manager. She told Jacqueline my daughter if she stopped paying the mortgage that she would be found in the UK and would not only have to pay the 20.000,00 she owed but have to pay double 40.000,00 and be taken to court for it. I think this frightened my daughter so we both continued to pay up until a month ago. The other partner was always late in paying up front, so this left me having to pay for the mortgage until I received the money in my account. I deal now with the bank because Jacqueline lives in England (does not own a property in UK) and is getting very stressed over the matter. Could you please HELP.

My daughter has found someone that will take the mortgage over, but because we do not know the how to proceed we have asked the bank to deal with the person and tell her all the documents she will need. The bank promises to deal with this person, but has not been in touch with her by telephone or email. The bank is the ones holding everything up. We also asked what expenses Jacqueline would have, if any, if she just gave her half of the property away.
Jacqueline has not paid any taxes on the property since she owned it, and insists that she must pay this up before passing it over to the girl taking the flat over. But Lola the bank manager says this;- please see below costs involved in the sale of the appartment
Notary office
Land registery
TAX
7% of the sale price (50% as your daughter only sells her half)
3% (50% of the sale price) as she is non resident.
eg: sale price 75.000€
Tax: 7% of 37.500 + 3% of 37.500

Surely this cannot be right?

Can you help please?

Does the person taking the mortgage over need a solicitor?
What costs would the person have? Notary etc.
What does she need for the Bank, statement of wages etc.
NIE number before taking the property over?
We must try to let the person know what costs are involved before she takes this mortgage over.
Also my daughter what will she have to pay in CGT as the bank say that they tax office will think she is trying to dodge taxes by giving this half of flat away, so it has got to have a minimum selling price. Say 75.000,00 Euros
We thought all of this would be so simple, just give the half away, but it is very complicated as far as I can see.

Thanking you Pauline Overton (Jacqueline’s Mum)

[Patricia]

Hello Pauline,

If your real intention is that your daughter sells her half of the property, I recommend you to appoint a solicitor that takes care of the process and represents both parties; seller and buyer, who would also deal with the mortgage subrogation.

You can contact me on the details below my signature if you wish and send me the related documentation so I can give you an estimate of costs if that operation was finally formalized, though if unable to sell the property in time, it may be the best option to try a Dacion en Pago, that is, to hand over the property as payment of the debt, considering there is positive equity and that the bank can still make a profit if they sell the property after repossessing. We could also offer our assistance in this matter.

Regards,

[Patricia]

Hello Africa

Sorry for the late reply.

If you are are a resident and reinvest the proceeds of the sale in another property whithin two years, you are exempt capital gains. If you will not be buying another property, then you will be taxed at 21% of the profit made. If you provide me with the date of purchase, purchase price, expected sale price and costs involved in the purchase and sale, I can provide a rough estimate of your capital gains liability.

Kind regards,

[stuart lippitt]

I currently live in the uk and pay rent for my main accomadation. I purchased a property in spain in 2004 which I use as a holiday home for my self so I only have one actual property I own to my name which is in spain. what taxes would I be liable to incurr in spain should I wish to sell my Spanish property and buy a main residence in the uk. I am aware of the non residents 19% cgt and the 3%. is there such thing as in the uk as the private resident relief? Most of the questions I have read refer to IHT or second property owners. many thanks.