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One-time taxes that are incurred with the sale of your real estate:
In Spain, all profits from sale are always taxable.
For you, tax will be incurred as a profit tax as part of the annual tax return (IRPF), as well as the profit tax in the form of an added incremental value tax on the land and soil (Plusvalía).
The income tax (profit tax) for the sale of your property
Income tax is payable for the sale of your real estate.
A distinction is made between the unrestricted tax obligation for resisdents and the limited tax obligation for non-residents.
The one-time profit tax for non-residents (limited taxability)
For non-residents, the income tax rate is 19% (21% for non-EU residents and after Brexit for UK residents). It is taxed on the differntial value between the acquisition value and the sale value.
The taxes on revenue for the purchase of a person living abroad
If you have no taxable residence in Spain, the buyer mus pay 3% of the sales price as an advance payment on the income tax withheld from you and pay it to the tax authority.
This step is handled with the certification appointment for the notarised purchase agreement with a notary or tax consultant. If the total of this 3% is greater than your earned profit, you are entitled to reimbursement from the tax authority. If it is higher, the differntial amount must be paid later.
In any case, within 4 months after this sales appointment with the notary, you have to prepare and submit a profit tax statement.
The one-time profit tax for residents (unlimited taxability)
Residents must declare the profit in the annual tax return.
The amount of the income taxs for residents is 19% and is incurred on the differential between the acquisition value and the sales value.
(Aquisition Value = former property price + all incurred incidential acquisition costs (IVA or land acquisition tax, attorney, borker, tax consultant, notary and land registry costs) + all costs for the real estate while it is owned are also asserted plus any remodelling and renovation costs or write -offs.
The profit is tax-free in the following cases that require that the seller is a taxable resident for at least three years:
You are obliged to pay the added incremental value tax "Plusvalia" for the sale of your proerty.The plusvalia is geared toward the increase in the land register value of the property froom the tiem of purchase by the current seller until the current time of sale.
Last Update: Januay 2018
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