# Trading up to a bigger flat



## mike kelly (Aug 12, 2009)

Trading Up

Does anyone have experience with trading up from a smaller flat to a larger one in Spain (Barcelona)? I'm thinking in terms of how much taxes and expenses are incurred. I would like to buy a bigger flat with an extra bedroom but don't want to make sure I calculate my expenses correctly beforehand.


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## xicoalc (Apr 20, 2010)

If you are thinking of trading up why dont you speak to an inmobilaroa to discuss buying one and selling one and ask them about taxes etc?


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## mike kelly (Aug 12, 2009)

xicoalc said:


> If you are thinking of trading up why dont you speak to an inmobilaroa to discuss buying one and selling one and ask them about taxes etc?


I wouldn't trust ANYTHING a Spanish real estate agent would tell me. I visited quite a few properties before buying my flat and got a really bad impression from many of the agents I dealt with.


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## snikpoh (Nov 19, 2007)

mike kelly said:


> I wouldn't trust ANYTHING a Spanish real estate agent would tell me. I visited quite a few properties before buying my flat and got a really bad impression from many of the agents I dealt with.


... then ask a gestor or abogado.

Costs to buy (depending where in Spain) is about 15% of purchase price.

Cost to sell is much less (mainly agents fees at 3% or more).


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## alborino (Dec 13, 2014)

Mike if by chance you are going to sell your flat for more than you paid make sure you check how that gain will be carried forward into your next property. And if you have increased the flat's value by making improvements make sure you have the paper work available.

Yeah I know profit on Spanish property is a rare thing these days but you never know


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## mike kelly (Aug 12, 2009)

Well, word on the street in Barcelona is that property prices are indeed increasing. For the last few months I've been getting advertising leaflets in my mailbox saying" I want to buy your flat - call me" (more or less). Back in the boom years, I had such a leaflet almost every day.


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## xicoalc (Apr 20, 2010)

mike kelly said:


> I wouldn't trust ANYTHING a Spanish real estate agent would tell me. I visited quite a few properties before buying my flat and got a really bad impression from many of the agents I dealt with.


Oh I think its a little unfair to generalise... of course there are good and bad but get an idea of the value of yours, costs to buy what you want and of course their opinion on costs... but as others have said speaking to a gestor is the best way to know what your liabilities will be


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## CristiandelaTorre (Feb 26, 2015)

As some told you costs are:
Plusvalía on the property you are selling 
Purchase costs of the new property (10% tax, Notary, Registry, Gestoria)
If you invest the money obtained from selling your actual property, you don´t need to pay 
income tax.


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## mike kelly (Aug 12, 2009)

CristiandelaTorre said:


> If you invest the money obtained from selling your actual property, you don´t need to pay
> income tax.
> 
> 
> ...


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## CristiandelaTorre (Feb 26, 2015)

Yes It is better to call it a capital gain, that if resident you have to declare in IRPF (impuesto renta personas físicas) and you declare it together with your incomes.


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## snikpoh (Nov 19, 2007)

CristiandelaTorre said:


> Yes It is better to call it a capital gain, that if resident you have to declare in IRPF (impuesto renta personas físicas) and you declare it together with your incomes.


I think it's a language issue.

The tax is "Capital Gains Tax" and not "Income Tax".

It might well be treated like income in Spain (I don't know) but it is actually Capital Gains Tax and completely separate from income.


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## mike kelly (Aug 12, 2009)

Thanks for the info. Out of curiosity, if you are not fiscally resident in Spain and you sell a spanish property, are you still liable for capital gains tax? If so, how is such a tax actually paid? For example, is it withheld in the moment the sale takes place?


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## CristiandelaTorre (Feb 26, 2015)

snikpoh said:


> I think it's a language issue.
> 
> The tax is "Capital Gains Tax" and not "Income Tax".
> 
> It might well be treated like income in Spain (I don't know) but it is actually Capital Gains Tax and completely separate from income.


Yes it is, thanks for your comprehension, 
I was trying to explain when you are Spanish resident gain tax is paid together with income tax in IRPF, once a year.


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## CristiandelaTorre (Feb 26, 2015)

Taxes after selling a property:

cpubcn - Tributación per la venta de una propiedad inmobiliaria

Sorry it's in Spanish


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## snikpoh (Nov 19, 2007)

mike kelly said:


> Thanks for the info. Out of curiosity, if you are not fiscally resident in Spain and you sell a spanish property, are you still liable for capital gains tax? If so, how is such a tax actually paid? For example, is it withheld in the moment the sale takes place?


Yes 3% is withheld at the point of sale (Notaire) to offset against any CGT liability.


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