Conveyancing lawyers in Marbella at our firm, Welex, have the pleasure to inform you about the capital gains tax in Spain at the time of the sale of your property.
When you sell a property in Spain, you must take into account that the profit you obtain is subject to tax. This is the Spanish capital gains tax, which is also known as ganancias patrimoniales.
The current applicable rate of the Spanish capital gains tax is 19% for non-tax residents in Spain. It is applied to the difference between the sale price, less the amount for expenses and taxes inherent to the sale price paid by the seller, and the purchase price paid, plus the expenses and taxes inherent to the purchase, which will be added.
3% withholding tax at the time of the sale
Keep in mind that when the seller is a non-resident of Spain, the buyer is required to retain 3% of the purchase price, which is deposited in the Public Treasury, as payment on account for the corresponding capital gains tax for the seller that arises from the sale of the property.
In the case of a non-existence of a gain or when the withholding of 3% exceeds the amount that must be paid by the seller, he/she will be entitled to a refund of part or all of the aforementioned retention.
In this case, when requesting the refund, the tax authorities may proceed with the return within six months from the deadline established to submit the refund request or can practice a provisional tax assessment. After six months without ordering the payment of the refund for reasons not attributable to the taxpayer, the corresponding interest for a late payment will be applied to the outstanding amount to be refunded.
Exemption on the capital gains tax in Spain
You must take into consideration that there is a partial 50% exemption on the profits obtained from the sale of a property acquired between May 12, 2012 and December 31, 2012. This exemption will not be applicable, among other assumptions, when the sale is made in favour of the spouse or relative up to the second degree, which includes children, siblings, grandparents.
If you wish to obtain information regarding the sale of your property in Spain, contact the expert conveyancing lawyers at our law firm in Marbella. We will be happy to assist and inform you about the expenses and taxes that arise from the sale of your property.
Do you wish to learn more on the capital gains tax in Spain? Do you need any additional information on the withholding of taxes at the time of the sale of your property in Spain? Contact the property lawyers at our firm in Marbella now!
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