# % tax on sale of property in Spain as a non-resident?



## Antonia

Hi,
I am currently trying to sell my house in Granada and need to know what % seller's tax to take in to consideration when setting the price.
I am no longer resident in Spain.
Many thanks for any advice anyone can give me
Antonia


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## dinnow

Antonia said:


> Hi,
> I am currently trying to sell my house in Granada and need to know what % seller's tax to take in to consideration when setting the price.
> I am no longer resident in Spain.
> Many thanks for any advice anyone can give me
> Antonia


The only taxes you should pay as a seller are _plusvalia_ and capital gains tax. The transfer tax (_(impuesto de transmisiones patrimoniales_) is normally the liability of the purchaser but make sure that you make this clear when agreeing any sale. 
Hope this helps.


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## gus-lopez

In addition the buyer is required to withold 3% of the total sale price & pay it in to the Hacianda in your name as a deposit against capital gains tax. This applies even if you are selling at a loss. This also applies whether you are resident or non-resident now . A resident doesn't have the retention applied if he has a fiscal tax certificate .


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## Antonia

Many thanks.

The plusvalia is the tax paid on the difference between what I paid for the house and what I sell it for isnt it?
Do you know what the plusvalia is as a percentage?
Do they take into account the money I spent renovatiing the house?
Antonia



dinnow said:


> The only taxes you should pay as a seller are _plusvalia_ and capital gains tax. The transfer tax (_(impuesto de transmisiones patrimoniales_) is normally the liability of the purchaser but make sure that you make this clear when agreeing any sale.
> Hope this helps.


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## Antonia

Thanks!
A


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## gus-lopez

Antonia said:


> Many thanks.
> 
> The plusvalia is the tax paid on the difference between what I paid for the house and what I sell it for isnt it?
> Do you know what the plusvalia is as a percentage?
> Do they take into account the money I spent renovatiing the house?
> Antonia


I think it's 8% now. Yes, you can offset the gain by supplying receipts for work done . Also the transfer tax & estate agents / solicitors fees from purchase can be deducted as well.


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## Antonia

Thanks, that makes things clearer.
Antonia


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## dinnow

gus, you are muddling your taxes. The 8% refers to the transfer tax _(impuesto de transmisiones patrimoniales)_ which is normally paid by the purchaser. And in Granada, in fact in all of Andalucia, the 8% is only where the property has an escritura value in excess of €400,000. Under that amount it is still 7%
antonia - _Impuesto sobre el incremento de valor de los terrenos de naturaleza urbana, or plusvalía _as it is more commonly known, is a municipal tax on the increase in the value of urban land while in the seller's ownership. It only applies to urban land - not rural. The aim is to tax this increase in value, some of which is due to improvements to the area carried out by the local government and the community at large. So, the longer the property has been in the owner's possession, the higher the tax, which is levied as a percentage of the valor catastral. The tax is normally only a few hundred euros.
Both residents and non-residents are liable for capital gains tax on the sale of their property - _impuesto sobre el incremento de patrimonio de la venta de un bien inmueble_. From 2007 both residents and non-residents were taxed at 18% of the chargeable gain. That has now risen to 19%. The chargeable gain is the difference between the selling price and the buying price as shown in the respective escrituras after allowable deductions. These include costs associated with the purchase and sale - transfer tax/IVA, stamp duty, plusvalía, notary and Property Registry fees, lawyers' fees. Fully-receipted documentation will be required; costs of any improvements to the property which have added value, but not maintenance and repair. Again, fully receipted documentation will be required; and an allowance for inflation according to an official inflation index - _coeficiente de actualización _ I can give you details of the calculation but your lawyer is a better bet.


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## Beachcomber

Plus-valía certainly does apply to rural land but only if it has a building on it.

As far as the three per cent retention is concerned some or all of this this can be reclaimed depending on the result of your capital gains tax declaration but you must pay the difference if the retention does not cover the amount of your capital gain.

The capital gains tax declaration used to be made on form 212 but since the 1st January it must be made on form 210 which is the same form as other non-resident taxes.

The 8% on properties over €400.000 is only payable on the excess, ie it is 7% on the €400.000 and 8% on the excess.

It would be more advisable to use an asesor fiscal than a lawyer to handle these matters for you.


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## Antonia

Thanks, youve all been very helpful. I dont have a lawyer (tho i do have a lawyer friend) but I do have an asesor fiscal tho he did stuff for my business so im not sure if this is his area.
My main concern was that we have spent a lot renovating the house and I was worried that couldnt be offset. It was all done with official bank building loans and IVA on the facturas so it should be fine.
Thanks again, things much clearer now, phew...
Now i only need a buyer...
Antonia


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## gus-lopez

Antonia said:


> Thanks, youve all been very helpful. I dont have a lawyer (tho i do have a lawyer friend) but I do have an asesor fiscal tho he did stuff for my business so im not sure if this is his area.
> My main concern was that we have spent a lot renovating the house and I was worried that couldnt be offset. It was all done with official bank building loans and IVA on the facturas so it should be fine.
> Thanks again, things much clearer now, phew...
> Now i only need a buyer...
> Antonia


Think positive !


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