Netlex, your lawyer in Marbella.
When it comes to selling a property in Spain, there are two taxes that the seller must face.
If the seller transfers the property for a value higher than the acquisition price, he will obtain a capital gain that can be taxed in personal income tax.
It is noteworthy that for the same capital gain, the tax that a foreigner has to pay (IRNR) on the sale of a property in Spain is usually much lower than the tax that a person resident in Spain must face (IRPF).
- The applicable tax rate for non-residents is 19%.
- The tax rate for residents in Spain is in a range that ranges from 19% for earnings below € 6,000 to 23% for earnings above € 50,000.
Now, there are certain cases in which this capital gain could be exempt from tax in the personal income tax return:
- Sale of real estate by residents in Spain over 65 years of age.
- Reinvestment of the profit obtained from the sale of the (habitual) home in the purchase of a new habitual home.
- For residents in Spain, and for non-residents, discounts are applied when the date of acquisition of the property that is now transmitted is prior to the year 1994.
PLUSVALIA TAX IN SPAIN.
We refer to the tax on the increase of land value (IIVTNUE-Municipal Capital Gain).
The plusvalia tax in Spain is a municipal tax that must be paid to the town hall of the town where the property is located, but which is managed in Marbella by the municipal collection board.
Each council establishes a specific tax rate (within the margins established by the local finance law). In the case of Marbella, the approximate amount to be paid can be calculated through this formula:
Cadastral value of the land (according to IBI receipt) x number of years the property has been in the seller’s possession before selling it (maximum 20) x 0.022 (2.2%) x 0.18 (18%)
“Netlex” is an advisory firm for companies and individuals, where we can help you solve all your doubts and comply with all your tax obligations.