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22 Jan 2020 9:56 PM by newworld Star rating. 942 posts Send private message

Capital Gains Tax. How much would I pay bought a place for 130k  plus taxes let's say 13k  I have had  work done pool & glass curtains let's say 20k and permissions given and licenses from town hall.  Let's say I sell for 190k  what would I pay.

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23 Jan 2020 10:19 AM by windtalker Star rating. 1940 posts Send private message

Not to sure what you wil pay in Tax..but if you have spent money on improving the property can offset the cost against this providing you kept all the I have been told.

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23 Jan 2020 10:22 AM by mariedav Star rating in Ciudad Quesada. 1221 posts Send private message

Depends on a lot of things. Resident or non-resident, main home or second home, purchasing another property in the  EU, age and lenght of ownership for example. Buying a new home in the EU and no CGT if you use the profit to buy another home. Main home and over 65 living there for more than 3 years then no CGT and so on.

However, assuming you're resident and simply selling up, the CGT rates are:

  • Up to 6.000 Euros, the tax rate is 19%.
  • From 6.000 to 50.000 Euros, the tax rate is 21%.
  • From 50.000 Euros an up, the tax rate is 23%.

The price written in the title deeds (not the IVA) is the basic charge and you can deduct expenses like IVA, land registry fees, Notary fees, transmission tax and lega fees from the profit. 

If you've  made  improvements, like the pool, and done it properly then the deeds will be altered to reflect the increase in value. If the full 20k you mentioned is added to the value then the difference in value and selling price would be 40k. Deduct expenses of (say) 10% and the CGT would be based on 36.6 k. 

First €6,000 -=1140

Next €30,600 = 6426 

Total CGT 7566. Of course, I doubt if you'd pay anywhere near that if you get a decent solicitor.

And selling a property in Spain with those difference nowadays would mean that you either bought the property a long time ago (in which cas historic allowances come into play) or you've found a mug who is willing to pay well over the value. 

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23 Jan 2020 1:20 PM by newworld Star rating. 942 posts Send private message

Thanks for the detailed reply ,first off I am non resident not retired yet.  I might be buying another property in the uk I already have a uk property so I will have to pay the extra 3% second home tax. The property I have in Spain that I am selling was a bank property which I got at a good price I bought it 3 years ago.

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23 Jan 2020 2:04 PM by mariedav Star rating in Ciudad Quesada. 1221 posts Send private message

In which case it is a fixed 19%  on the gain (if you are a EU citizen, 24% if you are not) but you can't claim the expenses.

So if your property sees a profit of 40k then you will pay a CGT of €7600. 

The 3% is retained from the selling price of the property (if 190k then €5700). If you pay the CGT owing then this is claimed back but, beware, the tax people will only try and contact you once. If your address or bank account details or anything else on the 210H is different then they will attempt to pay it once and, if refused because of bank account or address unknown etc then they won't try again and it will disappear into the ether. 

When we sold a flat (as non residents) some time back, the  bank changed our account number from a non-resident to a resident one as we became residents but was not recognised for tax purposes until the following year. The 3% was never returned and a gestor and solicitor all gave the impression that the 1800 euro wasn't worth it. Some 7 years later, we finally got to the hacienda in Alicante and finally received the money back (with about 300 euro interest or something like that).


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23 Jan 2020 6:20 PM by Roberto Star rating in Torremolinos. 4551 posts Send private message

Roberto´s avatar

I would concur with the previous post. Purchase price 130K + purchase expenses approx. 13K = 143K, deducted from sale price 190K = estimated gain of 47K. CGT @ 19% = 7600€.  Of course, this may instead be 24% if the sale completes after the end of this month, depending on how Spain decides to interpret the situation, and if it completes after the end of this year almost certainly will be at the higher rate.

 Also agree that 3% (5700€) will be retained at time of sale (non-resident retention). The only difference as far as I am aware is that when (or if) you file your 210 declaring the gain, you will only have to pay the outstanding balance, i.e. 1900€) since the rest will already be held in retention (You will need the reference number of the 211 filed by the buyer proving the retention was paid). I say "if", because many non-resident sellers probably just don't bother, and hope the Spanish tax man won't be bothered to track them down for a couple of grand. Persoanlly I wouldn't take the risk, and prefer to pay my dues & sleep well wink

 You will also be liable for Plus Valia, but since you've only owned the property for 3 years this is unlikely to be a huge amount. 



"Get your facts first, then you can distort them as you please"

Mark Twain




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