% tax on sale of property in Spain as a non-resident?

Go Back   Expat Forum For People Moving Overseas And Living Abroad > Expat Forum General and International > Expat Tax

Expat Tax This forum is for tax related queries and discussions for all expats.

% tax on sale of property in Spain as a non-resident?


Closed Thread
 
Subscribe to this Thread Thread Tools
  #1 (permalink)  
Old 20th February 2011, 01:15 PM
New Member
 
Join Date: Apr 2009
Location: Scotland
Posts: 13
Rep Power: 0
Antonia is on a distinguished road

Users Flag! Originally from scotland. Users Flag! Expat in spain.
Default % tax on sale of property in Spain as a non-resident?

Hi,
I am currently trying to sell my house in Granada and need to know what % seller's tax to take in to consideration when setting the price.
I am no longer resident in Spain.
Many thanks for any advice anyone can give me
Antonia

Quick reply to this message
  #2 (permalink)  
Old 20th February 2011, 04:08 PM
Banned
 
Join Date: Feb 2011
Location: UK
Posts: 117
Rep Power: 0
dinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond repute
1 likes received

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

Quote:
Originally Posted by Antonia View Post
Hi,
I am currently trying to sell my house in Granada and need to know what % seller's tax to take in to consideration when setting the price.
I am no longer resident in Spain.
Many thanks for any advice anyone can give me
Antonia
The only taxes you should pay as a seller are plusvalia and capital gains tax. The transfer tax ((impuesto de transmisiones patrimoniales) is normally the liability of the purchaser but make sure that you make this clear when agreeing any sale.
Hope this helps.


Last edited by xabiaxica; 20th February 2011 at 04:21 PM. Reason: link to competing service removed re:rule 10
Quick reply to this message
  #3 (permalink)  
Old 20th February 2011, 04:15 PM
Member
 
Join Date: Jan 2010
Location: Lorca
Posts: 4,019
Rep Power: 24934
gus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond repute
71 likes received
281 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

In addition the buyer is required to withold 3% of the total sale price & pay it in to the Hacianda in your name as a deposit against capital gains tax. This applies even if you are selling at a loss. This also applies whether you are resident or non-resident now . A resident doesn't have the retention applied if he has a fiscal tax certificate .

Quick reply to this message
Sponsored Links
Advertisement
 
  #4 (permalink)  
Old 20th February 2011, 04:55 PM
New Member
 
Join Date: Apr 2009
Location: Scotland
Posts: 13
Rep Power: 0
Antonia is on a distinguished road

Users Flag! Originally from scotland. Users Flag! Expat in spain.
Default

Many thanks.

The plusvalia is the tax paid on the difference between what I paid for the house and what I sell it for isnt it?
Do you know what the plusvalia is as a percentage?
Do they take into account the money I spent renovatiing the house?
Antonia

Quote:
Originally Posted by dinnow View Post
The only taxes you should pay as a seller are plusvalia and capital gains tax. The transfer tax ((impuesto de transmisiones patrimoniales) is normally the liability of the purchaser but make sure that you make this clear when agreeing any sale.
Hope this helps.

Quick reply to this message
  #5 (permalink)  
Old 20th February 2011, 04:55 PM
New Member
 
Join Date: Apr 2009
Location: Scotland
Posts: 13
Rep Power: 0
Antonia is on a distinguished road

Users Flag! Originally from scotland. Users Flag! Expat in spain.
Default

Thanks!
A

Quick reply to this message
  #6 (permalink)  
Old 20th February 2011, 06:47 PM
Member
 
Join Date: Jan 2010
Location: Lorca
Posts: 4,019
Rep Power: 24934
gus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond reputegus-lopez has a reputation beyond repute
71 likes received
281 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

Quote:
Originally Posted by Antonia View Post
Many thanks.

The plusvalia is the tax paid on the difference between what I paid for the house and what I sell it for isnt it?
Do you know what the plusvalia is as a percentage?
Do they take into account the money I spent renovatiing the house?
Antonia
I think it's 8% now. Yes, you can offset the gain by supplying receipts for work done . Also the transfer tax & estate agents / solicitors fees from purchase can be deducted as well.

Quick reply to this message
  #7 (permalink)  
Old 20th February 2011, 07:17 PM
New Member
 
Join Date: Apr 2009
Location: Scotland
Posts: 13
Rep Power: 0
Antonia is on a distinguished road

Users Flag! Originally from scotland. Users Flag! Expat in spain.
Default

Thanks, that makes things clearer.
Antonia

Quick reply to this message
  #8 (permalink)  
Old 20th February 2011, 07:33 PM
Banned
 
Join Date: Feb 2011
Location: UK
Posts: 117
Rep Power: 0
dinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond reputedinnow has a reputation beyond repute
1 likes received

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

gus, you are muddling your taxes. The 8% refers to the transfer tax (impuesto de transmisiones patrimoniales) which is normally paid by the purchaser. And in Granada, in fact in all of Andalucia, the 8% is only where the property has an escritura value in excess of €400,000. Under that amount it is still 7%
antonia - Impuesto sobre el incremento de valor de los terrenos de naturaleza urbana, or plusvalía as it is more commonly known, is a municipal tax on the increase in the value of urban land while in the seller's ownership. It only applies to urban land - not rural. The aim is to tax this increase in value, some of which is due to improvements to the area carried out by the local government and the community at large. So, the longer the property has been in the owner's possession, the higher the tax, which is levied as a percentage of the valor catastral. The tax is normally only a few hundred euros.
Both residents and non-residents are liable for capital gains tax on the sale of their property - impuesto sobre el incremento de patrimonio de la venta de un bien inmueble. From 2007 both residents and non-residents were taxed at 18% of the chargeable gain. That has now risen to 19%. The chargeable gain is the difference between the selling price and the buying price as shown in the respective escrituras after allowable deductions. These include costs associated with the purchase and sale - transfer tax/IVA, stamp duty, plusvalía, notary and Property Registry fees, lawyers' fees. Fully-receipted documentation will be required; costs of any improvements to the property which have added value, but not maintenance and repair. Again, fully receipted documentation will be required; and an allowance for inflation according to an official inflation index - coeficiente de actualización I can give you details of the calculation but your lawyer is a better bet.

Quick reply to this message
  #9 (permalink)  
Old 20th February 2011, 09:58 PM
Member
 
Join Date: May 2009
Posts: 360
Rep Power: 1839
Beachcomber has a reputation beyond reputeBeachcomber has a reputation beyond reputeBeachcomber has a reputation beyond reputeBeachcomber has a reputation beyond reputeBeachcomber has a reputation beyond reputeBeachcomber has a reputation beyond reputeBeachcomber has a reputation beyond reputeBeachcomber has a reputation beyond reputeBeachcomber has a reputation beyond reputeBeachcomber has a reputation beyond reputeBeachcomber has a reputation beyond repute
6 likes received

Users Flag! Expat in spain.
Default

Plus-valía certainly does apply to rural land but only if it has a building on it.

As far as the three per cent retention is concerned some or all of this this can be reclaimed depending on the result of your capital gains tax declaration but you must pay the difference if the retention does not cover the amount of your capital gain.

The capital gains tax declaration used to be made on form 212 but since the 1st January it must be made on form 210 which is the same form as other non-resident taxes.

The 8% on properties over €400.000 is only payable on the excess, ie it is 7% on the €400.000 and 8% on the excess.

It would be more advisable to use an asesor fiscal than a lawyer to handle these matters for you.


Last edited by Beachcomber; 20th February 2011 at 10:02 PM.
Quick reply to this message
  #10 (permalink)  
Old 21st February 2011, 02:56 PM
New Member
 
Join Date: Apr 2009
Location: Scotland
Posts: 13
Rep Power: 0
Antonia is on a distinguished road

Users Flag! Originally from scotland. Users Flag! Expat in spain.
Default

Thanks, youve all been very helpful. I dont have a lawyer (tho i do have a lawyer friend) but I do have an asesor fiscal tho he did stuff for my business so im not sure if this is his area.
My main concern was that we have spent a lot renovating the house and I was worried that couldnt be offset. It was all done with official bank building loans and IVA on the facturas so it should be fine.
Thanks again, things much clearer now, phew...
Now i only need a buyer...
Antonia

Quick reply to this message
Closed Thread


Quick Reply
Message:
Options

Register Now

In order to be able to post messages on the Expat Forum For People Moving Overseas And Living Abroad forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:
Location
Where you live
Expat From Country
Please select the country you originate from. This will appear as a flag when you make posts on the site.
Expat To Country
Please select the country you have either moved to or want to relocate to. This will be presented on the site when you make posts.

Log-in


Thread Tools

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Resident visa, no sponsor, no property? marrcus Abu Dhabi and other UAE Expat Forum for Expats Living in the UAE 5 9th March 2011 03:40 AM
Selling spanish property as a Resident of Spain jmhalton Spain Expat Forum for Expats Living in Spain 3 29th July 2010 03:32 PM
Swiss Tax for Non Resident Property Owner John Fielden General Expat Discussions 3 9th March 2010 01:52 PM
tax for non resident purchases of property markfrance France Expat Forum for Expats Living in France 6 1st May 2008 11:29 PM

FORUM PARTNERS

ExpatForum.com is owned and operated by VerticalScope Inc.

Retiring Overseas Guides | Moving Overseas Guides | Cost of Living | Health Care Guides


All times are GMT. The time now is 02:13 PM.


Powered by vBulletin®
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.