# Plus Valia question



## xxxxxxxxxxxxxxxenjoylife (Jul 26, 2011)

Hi all,if i sell my property which i own 10 years 
i am not 65 of age how much is the plus valia
in case i reinvest in property in a different
region in Spain for example Mallorca?

thank you


----------



## larryzx (Jul 2, 2014)

enjoylife said:


> Hi all,if i sell my property which i own 10 years
> i am not 65 of age how much is the plus valia
> in case i reinvest in property in a different
> region in Spain for example Mallorca?
> ...



Plus Valía is a tax charged by the municipality on the increase in value of the land upon which the property is built, or a percentage in the case of apartments. It must be paid in all cases, unlike the exception to the capital gains tax for those over 65 who qualify. 

It is the responsibility of the seller, although that can be changed if buyer and seller agree. 

If you ask at the your town hall they will tell you how much it is. Of course it is a multiple of the number of years since the property was last sold.


----------



## xxxxxxxxxxxxxxxenjoylife (Jul 26, 2011)

Thank you Larry,very kind...

do you have an idea how is the actual situation with the capital 
gains tax,i think there is a new law,as from 2015 ?

thanks again


----------



## larryzx (Jul 2, 2014)

enjoylife said:


> Thank you Larry,very kind...
> 
> do you have an idea how is the actual situation with the capital
> gains tax,i think there is a new law,as from 2015 ?
> ...


Hi, I just read that the new law has aroused a lot of attention from the Spanish and thus a last minute amendment may be made to the law.

If that happens then the situation as it now, may change.

If one is 65 or over, tax resident and have lived in property three years or more, then the exemption from any Capital Gains Tax still applies. i.e. no tax to pay.
.


----------



## larryzx (Jul 2, 2014)

This is a machine translation of the info I read:-

_The Government is willing to soften the tax axe on housing hidden in tax reform. The Secretary of State of finance, Miguel Ferre, has explained this Tuesday at the five-day forum that is open to discuss the amendments tabled by the parliamentary groups about the new tax treatment of capital gains, it penalizes the sale of second-hand houses acquired before 1994.

The fiscal project of the Executive expected to remove two elements that reduce capital gains generated in equity income sales such as coefficients of reduction and price-level restatement indexes. The effect resulting from this measure in the pocket of the taxpayer would be enormous.

A taxpayer who bought an apartment in 1985 for two million pesetas (12,000 euros), the average value of a home at the time, and sold it in December of this year would have to pay to the Treasury about 19,000 euros for capital gains generated in the operation. But if you sell the floor one month later, in January 2015, would have to pay nearly 56,000 euros. The difference, about 37,000 euros, is due to the Suppression of the coefficients of gloom and indices of monetary correction that takes into account the revaluation by the effect of inflation.

The coefficients were already removed in part on tax reform in 2006, approved by the PSOE Government, year which do not apply. I.e., are only entitled to the reduction of the capital gains dwellings acquired before 1995 and 2006. Moreover, as neither affects the over 65s who are entitled to the exemption for capital gains from housing.

Hacienda justified that in reality this modification affects very few people. Admits that it will only hurt those who bought a House before 1994, who are aged under 65 years, and now sell this House, but having also minimum alternative housing.

After received pressures, the Government raises will now soften this measure. The Secretary of State defended the abolition of the reduction coefficients. "It was a temporary measure that has lasted 18 years. That is not neutral and causes distortions". During his speech, added: "There is a very sharp fiscal effect between purchased the House in January 1995 or in December 1994". And went on: "so middle class is one like another", defended to rule out "be an axe at the middle class". Snr. Ferre said that the Government wants to differentiate the taxation of the incomes obtained from selling a flat in those that are accomplished "to get up every day at eight in the morning to go to work".

Despite this, the Secretary of State left open the door to possible changes in these measures tax: "the position of the Government is the listening to the contributions of the parliamentary groups, analyse the amendments submitted". Thursday ends the term having the political groups to table amendments in the Senate to tax reform.
Make use of goodwill

The Secretary of State has also announced that it will appeal the opinion and the European Commission (EC) that two weeks ago forced Spain to regain fiscal aid which had been granted to large companies when they acquired other foreign companies. "We will appeal this decision," Advanced Ferre. "The Government is not in accordance with what says that decision". Government responsible for tax Affairs stated: "I never understood how the previous Government not appealed against the judgement of the Court of the European Union on goodwill". Because, he said, "it was a very important instrument for the internationalization and the Spanish companies".

Ferre has explained that it does not share the Commission's decision because the deduction that allowed decudirse companies a part of goodwill - the difference between the price paid and the value in books of a company - were not state aid. In his view, that argument is explained because "they were a tax for all types of companies benefit". Ferre has ensured that some SMEs have benefited from this measure. In addition, he has allegedly "was designed to compensate for the obstacles that Spanish companies were when they reversed out"

_


----------



## Lynn R (Feb 21, 2014)

Following on from Larry's post, it has now been announced that the withdrawal of the old allowances against capital gains for property purchased many years ago will not now apply to gains of less than €400,000 (chance would be a fine thing! ). Perhaps that will please those who are waiting to sell their house.


Hacienda suaviza la penalizaci?n fiscal a la venta de viviendas antiguas

Oh no, sorry, just seen another article which makes it clear it will apply to properties sold for under €400,000.

http://economia.elpais.com/economia/2014/10/31/actualidad/1414756574_263809.html


----------



## CapnBilly (Jun 7, 2011)

Lynn R said:


> Following on from Larry's post, it has now been announced that the withdrawal of the old allowances against capital gains for property purchased many years ago will not now apply to gains of less than €400,000 (chance would be a fine thing! ). Perhaps that will please those who are waiting to sell their house.
> 
> 
> Hacienda suaviza la penalizaci?n fiscal a la venta de viviendas antiguas
> ...


And only if they were bought before 1994


----------



## xxxxxxxxxxxxxxxenjoylife (Jul 26, 2011)

i am confused now...
my case i am resident,bought my property 2002 and the amount 
less than 400000....i am not 65 

in percentage how much would be the property gains tax ?

thanks again


----------



## larryzx (Jul 2, 2014)

enjoylife said:


> i am confused now...
> my case i am resident,bought my property 2002 and the amount
> less than 400000....i am not 65
> 
> ...



At present it would appear that the law *maybe amended* but until that happens I do not think anyone can say what will happpen as from 1.1.15.

This is an extract from Lynn's references:-

_In particular, the PP has tabled an amendment in the Senate to tax reform that keeps coefficients of reduction for capital gains for patrimonial transmission not exceeding 400,000 euros to apply these coefficients of gloom.
_


----------



## xxxxxxxxxxxxxxxenjoylife (Jul 26, 2011)

Thanks Larry...appreciated your replies...

anyway things are always so complicated in this country....

the only thing what is working well,is the corruption...
they are really experts


----------



## snikpoh (Nov 19, 2007)

enjoylife said:


> Thanks Larry...appreciated your replies...
> 
> anyway things are always so complicated in this country....
> 
> ...


Hmmmmm ... a little biassed?

I think things are difficult whenever you change your country of residence. Just the same if a Spanish person moved to UK or to Austria - just different.


----------



## larryzx (Jul 2, 2014)

enjoylife said:


> Thanks Larry...appreciated your replies...
> 
> anyway things are always so complicated in this country....the only thing what is working well,is the corruption... they are really experts


Sorry I cannot agree. Most things are made to appear difficult by those who do not bother to get the right answers (maybe because they don't know the correct questions). People often incorrectly assuming that it must be the same in Spain as it is in UK and thus find they have problems later down the line.


An example. It is estimated that less then 5% of those who should have made the 720 declaration (assets over 50,000€ outside Spain) actually did so. Thus we may have 95% later complaining, when they get discovered, that it was 'too complicated' when in fact they thought they could decide to 'do it their way' and ignore the law.

Perhaps they were the ones you were referring to when you said, 'The only thing that is working well, is the corruption...'
they are really experts'.


----------

