Hi,

I want to sell my apt and buy a smaller one (to hopefully get rid of my mortgage) but I'm worried about Capital Gains Tax as I don't really understand it. Does my calculation look right?

Original apt price - €125,000 (inc. tax) plus €858 spent on plus valia of €24, property registry of €255 + 0.5% stamp duty of €579 = €125,858 x 1.125 (coeficiente example as I bought the apt in 2002 and hope to sell it this year) = €141,590. If I sell the apt for €199,000 - €141.590 acquisition costs that leaves €57,410 net proceeds. If I buy something within 2 years for €100,000 with 10% acquisition costs of €10,000, total €110,000 then I'm re-investing 88% of the profit (€110,00 divided into €125,000 = 88%) so am I right in thinking that I will be taxed on the remaining 12% of the profit? €57,410 x 12% = €6,889.20 x 15% resident capital gains tax = €1,033.38.

Also, can Notary costs be included in my calculations as they were €2,008 in total? (inc. the plus valia, property registry and stamp duty as it was a new property).

Would these costs have anything to do with my mortgage which I took when I bought the house as someone said to me that I couldn't include the notary costs in my calculations if they were connected with mortgage costs - to be honest I'm not sure of the notary breakdown apart from the 3 payments I just mentioned. Would a normal notary cost have anything to do with mortgage things?

Finally, what coeficiente amount should I use for purchase in 2002 and sell in 2010 (is it 1.125?).

Thanking you in advance for any advice.

Debbie