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Do I have to pay tax if I sell my house in Spain?
When selling a property in Spain, Plusvalia Municipal and Capital Gains Tax are a tax that you’ll need to pay. This is usually a percentage of the sale ranging from 19-24%, or calculated by the local authority based on other criteria.
What is the process for selling a property in Spain?
The Steps to Selling Property in Spain
- Appoint a Professional Real Estate Agency.
- The Formal Offer and Letter of Intent to Reserve.
- The Private Arras Contract (Contrato Privado de Arras)
- The Public Purchase Sale Deed (Escritura de compraventa)
- Capital Gains Tax.
- Plusvalía Tax.
- Mortgage Cancellation Fees (if applicable)
Do I need a lawyer to sell my house in Spain?
Although it is not mandatory to sell property in Spain assisted by a lawyer, it is highly advisable that you do; particularly if you are a non-resident. Lawyer and regular contributor Raymundo Larraín Nesbitt takes us through the advantages of having legal representation when you sell a property in Spain.
Who pays property transfer tax in Spain?
The transferee
The transferee must pay the tax at a rate up to 10 % of the purchasing price, depending on the region where the property is located. In case of purchasing a movable or personal property, rates also depend on the region where the purchase takes place.
Who holds the 3% capital gains tax when you sell a property in Spain?
When a non-resident sells property in Spain, they buyer is obliged to retain 3% of the price and pay it to the tax authorities to cover the vendor’s Capital Gains Tax (CGT) liabilities.
How much is capital gains in Spain?
Capital gains obtained in Spain by non-residents without a PE are taxed at a rate of 19% when they are generated from transfers of assets otherwise they are taxed at the general NRIT rate of 24% (for residents of other EU member states or EEA countries with which there is an effective exchange of tax information, the …
How much do solicitors charge for selling house in Spain?
Solicitors can also handle all paperwork and normally charge around 1% of the selling price.
How much is Capital Gains Tax in Spain?
19%
Capital gains obtained in Spain by non-residents without a PE are taxed at a rate of 19% when they are generated from transfers of assets otherwise they are taxed at the general NRIT rate of 24% (for residents of other EU member states or EEA countries with which there is an effective exchange of tax information, the …
How can I avoid Capital Gains Tax in Spain?
4 ways to get out of paying capital gains in Spain
- Update the value of the property according to the CPI.
- Include the costs of making the land buildable.
- Include notary fees, registration fees and taxes.
- One more trick you can use if there is still a profit on the sale of the house.
What documents do I need to sell my house in Spain?
The documents you need to sell your house in Spain
- Purchase Title Deed.
- Receipt for Notary Fees.
- Receipt for Local Rates/ Council Tax (IBI)
- Latest water bill and contract (or the contract reference number)
- Receipt for the last payment of the Community Fees.
How much does it cost to transfer a property in Spain?
The Spanish tax authorities may claim a transfer tax called Actos Juridicos Documentados (AJD) which varies regionally between 0.75% to 1.75% of the official property value.
Do you pay tax in Spain when you sell a UK house?
If you are a resident in Spain and sell your property in the UK, then you are also liable to pay capital gains tax in Spain. You must declare the income from the sale on your annual resident tax declaration.
How do I avoid capital gains tax in Spain?
The capital gains made by the resident taxpayers who are over the age of 65 will be exempt from taxation if they meet the following requirements:
- The profit from the sale of property or asset is reinvested in pension annuities.
- The seller meets the six-month deadline of reinvesting the profits into the pension annuities.
How much capital gains tax do you pay in Spain?
How much is capital gains tax in Spain?
Who pays notary fees in Spain?
The government sets their fees; so all notaries in Spain charge the same amount for an identical service (although they are allowed to apply a discount of 10%).
How much is stamp duty in Spain?
1.5%
Stamp duty (legal documentation tax/ AJD in Spanish) at 1.5% of the purchase price.
How can I avoid capital gains tax in Spain?