# patrimonio/ wealth tax on apartment owned by one person for most of the year, two people at the end of the year



## skip o (Aug 1, 2011)

How is the patrimonio on a Barcelona apartment handled when I own an apartment for most of the year, but I sell half to my wife and get her on the deed right at the end of the year? Is the apartment prorated on our patrimonios since I owned it for most of the year? Or would the apartment be split 50/50 on our patrimonios?


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## incatalunya (Nov 16, 2020)

Can I ask YOU a question please?. I own an apartment which is in my name only and I want to put my wife´s name on it too.
How did you go about it? Did you have to pay stamp duty or gift tax (or both) and if so what percentage of the value is it?

Would be great if you could advise me.....Thanks.


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## kaipa (Aug 3, 2013)

Transfer of assets between spouses/ partners in Spain is unfortunately subject to gift tax. However, each region has certain exemption on amounts. I know that the procedure requires a Notary and everyone says it's expensive. It also need to reported within 6 months. Again, however, Spanish folk seem to get around the tax issues by various methods as when I tried to do the same with my property my lawyer was perplexed by my wifes insistence everything be by the book. In the end we never did it as it was too costly.


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## incatalunya (Nov 16, 2020)

I think in Catalunya 99% is free of gift tax between spouses but it´s the stamp duty at ten per cent that puts me off doing it.
I already paid ten per cent when i bought it.


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## kaipa (Aug 3, 2013)

Yes I think you are right about the exemption part . No idea about the stamp duty but I do know it was incredibly expensive and not worth it. God knows how people manage divorce here and dividing assests as everything gets taxed again!!!


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## snikpoh (Nov 19, 2007)

skip o said:


> How is the patrimonio on a Barcelona apartment handled when I own an apartment for most of the year, but I sell half to my wife and get her on the deed right at the end of the year? Is the apartment prorated on our patrimonios since I owned it for most of the year? Or would the apartment be split 50/50 on our patrimonios?


Wealth tax only kicks in at about 700k with an extra allowance of 350k for your main home (varies by region though).

So wealth tax shouldn't be payable by most unless it is a very expensive property.

Do you perhaps mean CGT or simply gift tax as discussed above?


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## skip o (Aug 1, 2011)

An accountant answered my question. The percentages of an apartment owned on Dec 31 is what we would pay the wealth tax on.

Incatalunya, my understanding is that "adding" a spouse to a deed is treated by the tax authorities as a gift or a donation, so you need to be aware of the potential tax consequences. Also, the tax authorities may decide that your property is worth more than you claim. I haven't gone through the process yet, so I don't know the ins and outs.


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## kaipa (Aug 3, 2013)

Yes as I said the main difference is that in UK you can freely move money between spouses without any tax liability whilst in Spain absolutely everything is seen as a gift which might escape tax depending on the amount but almost certainly requires to need notify the authorities which usually incurs costs and can be subject to examination.


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