If selling a property, 5% of the new declared
Escritura value will need to be deposited
with the Hacienda as an advance payment
of any Capital Gains Tax on the sale. Any
refund will need to be applied for and can
take up to two years to be repaid. Non-residents
cannot roll-over the gain into a new home.
Succession
Tax
(Inheritance or Gift Tax) on Spanish property.
Your tax
obligation as a Resident is:
1. Income
Tax (Renta)
on all income received worldwide, with allowances.
2.
Wealth Tax (Patrimonio) on
property, with allowances.
3.
Capital Gains Tax
at a rate of 15% of net profit. Gains from
assets held for less than one year are treated
as income tax and taxed accordingly. For
property, there is up to 100% roll-over
relief on your main residence if the gain
is re-invested in the new main residence
within two years of the sale. If only half
the gain is re-invested, then half is taxable.
If you are 65 years or over and have lived
in your main residence for over three years
and are Spanish tax-resident, the gain is
tax-free and there is no need to buy a new
property to claim roll-over.
4. Succession
Tax (Inheritance or Gift Tax)
on worldwide inheritance or gifts, with
some allowances.
Source:
BlevinsFranks
See
also
Residency
Spanish
Income Tax
Spanish
Wealth Tax
Spanish
Capital Gains Tax
Spanish
Inheritance and Gift Tax
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