tax
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property related tax |
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Income Tax
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TAXES
ON PERSONAL REAL ESTATE IN SPAIN 2008 Sale of Spanish property by non-residents Sale of Spanish property by residents Taxation of Spanish rental income of non-residents Local mains drainage / refuse collection tax Transfer tax (ITP) on purchase of property
As from 1st January 2008, a tax credit is also available to renters who have an income below a certain threshold.
In order to comply with EU non-discrimination regulations, capital gains tax rates for both residents and non residents were equalised from 1st January 2007 onwards. 18 % tax is payable on the capital gain. For properties purchased after 1986, 3% of the declared sales price is withheld from the vendor at the point of sale. This is paid by the purchaser (normally via their solicitor) by submitting form 211, within one month of the sale. The balance of tax payable / reclaimable is settled by the vendor on submitting form 212, within a further two months.
Sale of Spanish property by
residents The taxpayer must have lived in property for 3 years, or had to sell because of change of job, marriage or separation. The gain is deferred and taxed on the sale of the new property. The sale must still be declared in the annual tax return.
Absolute relief
Taxation of Spanish rental income of non-residents Rental income is taxable at a flat rate of 24% with limited deductions. This should be declared on at least quarterly basis, submitting declaration 210 or 215.
The rate of taxation is determined by each local authority.
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If you are looking for advice on capital gains tax
spain, spanish capital gains tax or need advice on the taxation of capital gains in spain;
or possibly capital gains tax spain
then we will be happy to assist. |
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