CGT

[jayne3110]

Hello Jayne,

I believe you are a fiscal resident in Spain, and as such, you must declare your capital gains in your income tax return for 2012 (deadline June-2013).

The fact of having used the profit from the sale to pay off the mortgage does not affect your CGT liability, which is calculated regardless of any debt attached to the property. Using the figures you have provided, see below some rough calculations:



In 2012, as a resident, you pay 21% for the first 6,000 € and 25% for the excess. With this is mind, your total tax liability will be around 2,200 €. Note that I haven't included any selling costs (solicitor, agent, plusvalia tax, etc). If these exsit, and are over 9979.61 €, you will end up paying nothing.

Regards,

Hi
Thanks for your reply.
Do I automatically get 10% buying costs or do I have to prove them.I have no reciepts from when I bought the house only the escritura
Thanks
Jayne

[Patricia]

Hello Jayne

The receipts are mandatory. However, you may get around with just the escritura, as it will state whether you had to pay Transfer Tax on VAT (I believe it was 7% at the time). Regarding other receipts (notary, land registry, solicitor, etc) I'm afraid you will have to have them with you if you want to offset these costs).

Regards,