Hello Sue,


The Capital Tax is calculated as follows: (Purchase price plus costs ) - (Selling price minus selling costs ).

For instance if you buy for 200,000 € with 20,000 € expenses and sell for 240,000 €, deducting 20,000 € of selling expenses, the difference is cero, so no CGT would be applied.

The Cadastral value is the figure used to calculate the taxable value of the property. If this taxable value of the property is not consistent with the selling price, this will normally mean that the buyer will get an extra Transfer Tax claim (collected by the autonomous regions). Technically, the vendor could also get an extra Capital Gains Tax claim (from the Spanish central tax office) but up to date we have never seen or heard of anyone receiving such claims. In any case, you cannot be charged for Capital Gain if there has not been any. If you let me have the exact figures we can provide with an approximate calculation.

Regards,