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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 974. Taxes and expenses when selling property in Spain
Tuesday, June 18, 2013 @ 11:42 AM

 1.- Capital Gains Tax: http://www.agenciatributaria.es/AEAT.internet/Inicio_en_GB/English/Non_residents/Non_resident_Income_Tax/Non_resident_Income_Tax/Non_residents_with_no_permanent_establishment/Basic_taxation_issues/General_system_for_taxation_of_capital_gains.shtml

The buyer needs to pay 3% of property price into the Local Tax Office ( using model 211). After sending a copy of this payment to the seller, this can claim any excess within 3 months, using model 212 before Local Tax Office.

2.- Plusvalia:

 (Local Capital Gains Tax) named in spanish Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana is a municipal tax on the increase in the value of the urban land since the last recorded transfer

The tax obliged is the buyer.
Taxable amount or based is obtained by applying a rate, different for each municipality, to the value of the property at the time of the transfer, the number of years that the previous owner had the house is also taken into consideration.  The more years the less tax burden.
 
There is a tax relief if you reinvest money from the sale of an urban house into another main address, the relief will consider the amount of reinvested money. 
 
It must be paid within 30 days from the signature of the sales deed, or within 6 months in case of inheritance.

3.- Notary and Registry expenses: Unless agreed differently. Notary costs are to be paid by seller but one copy of the deeds which will be paid by the buyer. Buyer will pay Registry expenses
 
 
Bornos, Cadiz, Southwest of Spain
 
 
 


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2 Comments


Pico said:
Monday, July 1, 2013 @ 2:44 PM

Hola Maria,
Interesting article you have written, and as we have just received a letter from the Agencia Tributaria, with regard to one of the points you make here, it is something that people should be aware of when they BUY a property also.
We bought a property in July 2011. This week, a registered letter arrived from the Agencia Tributaria stating that although the 3% retention had been paid, it was 31 days outside of the 30 days payment period and as such WE should pay them 145,00€. Many people who buy properties allow the bank, or the lawyer acting for the bank, to make this payment as part of the notary process. However, when reading up on this I note that the BUYER is legally responsible for ensuring the retention is made within 30 days. I contacted the lawyer who handled the transaction for the seller, and they have informed me that the (mortgaging) banks solicitor handled the payment and they have forwarded a copy of the letter to them. What do you recommend in this instance? Are we legally responsible even though we never saw the copy of modelo 211? Thanks.


Maria said:
Wednesday, July 3, 2013 @ 12:25 PM

Pino:
Of course, if any professional had the duty to perform that declaration on your behalf and there was any misconduct or mistake, he/she is liable. Ask for her/him indemnity insurance.

If you need further assistance, you can contact us at web@costaluzlawyers.es

Cheers and feliz verano,

Maria


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