Taxes in Spain after a sale - Ciudad Quesada - Costa Blanca . Montsé & AM Property Real Estate .

After a Sale, Taxes.

Yes, in Spain, you must pay a capital gains tax when you sell a property. This tax is called Plusvalía Municipal or Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana (IIVTNU), as well as a capital gains tax.

Here are the two types of taxes to consider:

1. Plusvalía municipal (IIVTNU):

• This tax is levied by the town hall and is calculated based on the increase in the cadastral value of the land (only the land portion, not the house) during the time you have owned the property.
• The rate varies depending on the municipality and the number of years you have owned the property (usually between 1 and 20 years).

1. Capital Gains Tax (IRPF):

• This is the tax on capital gains earned from the sale. It is based on the difference between the purchase price and the sale price of the property.
• The tax rates for non-residents in Spain are generally 19% for European Union citizens and 24% for non-EU residents. For tax residents in Spain, the capital gains tax rates range from 19% to 28%, depending on the amount of the gain.

Exemptions:

• There are some exemptions, for example, for people over 65 years old who sell their primary residence, or if you reinvest the sale amount into the purchase of a new primary residence in Spain.

It is recommended to consult a tax advisor for information specific to your situation.