Capital Gains Tax on Selling Property (Resident)

I am Resident in Spain and own a property in the Valencian region. My question is, given I am tax resident and paying into the Spanish Tax System, for 2 months am I liable for CGT if I am going to buy another house with the proceeds of my house sale within the next 6-12 months.

If I am liable at 18% of the difference between the purchase and selling price then can I reduce my CGT liability with invoices for any refurbishment works that I have conducted? What can be included and what cannot be included

When I have worked out what I am due to pay....when do I have to pay it?

Thanks

 Dear Pknott,

If you are resident in Spain and you sell your property, you have to declare as a Spanish taxpayer. You have two years, (or three now) to invest that money in another property, because I assume that your are less than 65 years old. If you are not buying another property in Spain, you have to make your Spanish tax return, including this CGT but the % depends on your income. You could add all costs at the buying price (ITP, Notary, Registry, etc...) plus any refurbish you make on the property, as well as the costs in the sale (plusvalía).  You have to declare it in your tax return the following year.

Kind Regards,

Mar Durio
Calle Ancha 30, 2º
E-11201 Algeciras
(t) +34.956.092.687
(f) +34.956.092.697
m.durio@costaluzlawyers.es
www.costaluzlawyers.es

Hi

If I was over 65 yrs of age,and a fiscal resident of over three years in Spain.

I want to sell my property which is my main home and move back to the UK (for example) will I be liable for capital gains tax,as I will need all the sale procedes money to purchase a property to live in.

cheers

Glyn

 Dear Glyn,

If you are over 65 years of age and Spanish Resident, you are tax-exempt, as well as if ou bought it before 1984.

Kind Regards,

Mar Durio
Calle Ancha 30, 2º
E-11201 Algeciras
(t) +34.956.092.687
(f) +34.956.092.697
m.durio@costaluzlawyers.es
www.costaluzlawyers.es