Property Sale in Spain

Property Sale in Spain

Posted by adm4yGog24 in Real Estate Law 18 Jul 2013
The Spanish Tax Legislation distinguish between residents an non residents individuals. Therefore, if you are a non resident seller there will be certain retentions which the buyer is obliged to make to guarantee the tax payments.
However, once the buyer has presented the such retention declaration you can claim the money back. The amount will vary depending on the amount of expenses related to the property purchase and sale that you can prove as well as other exposer related to its ownership, such as

– Expenses made and taxes paid during the purchase process (attorneys, real estate agent, notary and property registrarĀ“s fees,

– When home improvements have been made during the course of ownership this can affect the tax payable

– There are possible further reductions to be obtained if the property has been bought up to 1996

– local taxes due on the gains from this property transactions (plusvalia) need to be determined so they can be deduced from the selling price from a taxation point of view.

Our solicitors can represent you in the entire process, so the Spanish taxation angle on selling your Spanish property is fully covered. From drafting up a pre-agreement going to completion all the way through to submitting the tax forms on your behalf so that the property gains tax will be pad timely and correctly, we can assist you in all or any of it.

We can also assist you in obtaining a tax refund in those cases where it’s due. This mostly happens when people sell their Spanish property that they acquired a very long time ago and the reductions that can be applied are very substantial. The buyer needs to hold back 3% of the transfer amount as a deposit towards capital gains tax due, and this amount can be higher than the eventual tax payable.

Purchasing a property abroad without knowing the tax system, the legislation and the language can be exhausting and frustrating. When investing abroad it is highly advisable to talk to a real estate attorney first and decide the house of action. An ethical professional will defend your interests and will simplify the purchase or sale process for you.
Contact our office to speak with one of our experts. (link a contact form) or request a call back.

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