There are only 3 rules that apply if you wish to sell your home in Spain, and not pay any tax* even if you’ve made a profit:
You are a “Fiscal” resident. You are aged 65 years or above, i.e. born before 1955. You have owned the house for longer than 3 years.
If you do not fall into all 3 of the above categories, you will be obliged to pay tax. This, however, can vary depending on other circumstances.
For instance: -
You are a “Fiscal” resident and are aged under 65 years, i.e. born after 1955. You will be liable to pay Capital Gains Tax if you sell, AND are making a profit. This will be calculated between the original purchase price, and the newly agreed sale price. Any home improvements that you have made, i.e. installing a swimming pool, air conditioning, central heating, new kitchen, etc. will be offset against any profit, only providing you have the official receipts as proof of purchase.
You are a “Non-Resident,” i.e. do not live here permanently and pay taxes here as a non-resident. You will be obliged to lodge 3% of the agreed sale price with the Spanish Inland Revenue. They will then calculate if any Capital Gains Tax is due. If you have made no profit, they will refund the full 3% to you at a later date, after completion. However, if there is Capital Gains Tax for you to pay, they will take it out of the 3% and refund you the difference. Again, any home improvements that you have made, i.e. installing a swimming pool, air conditioning, central heating, new kitchen, etc. will be offset against any profit, only providing you have the official receipts as proof of purchase.
Selling your home and avoiding tax is possible!
If you’re ready to sell your property, always seek the advice of a professional, it could save you thousands!
For tips and advice on selling, head to www.80ThingsReport.com to download your complimentary copy of my “80 Things Not To Neglect When Selling Your Home,” report.
*All Information is correct at time of print, however, taxes and laws can change therefore, it is always advisable to check with your trusted Tax advisor for up to date charges.