Spanish residents must pay capital gains tax on the profits obtained from the sale of property or any type of financial assets – such as funds or shares. Residents must declare any capital gains they have in both Spain and overseas.

 

As a Spanish resident, if you still own a property in another country and are you considering selling it, you must remember that any capital gain from the sale will be subject to tax under the Spanish Income Tax regulations. If the sale or transfer incurs a capital loss, you must declare the loss but do not have to pay any tax.

 

Capital gain or loss after the the transfer of the property or an asset is calculated first.  It is calculated by deducting the previous acquisition value from its transfer value taking into consideration the calculation rules established by the law. You must keep all documents from the purchase and sale - including all related expenses- as a record of taxes that have been paid.

 

Capital gains obtained from the transfer of the main residence are exempt, provided that the amount received from the transfer is fully reinvested in the acquisition of a new main residence in a the same financial year in which the capital gain is obtained, in the two previous years or the two following years. It is important to bear in mind that the main residence is considered as such if you have lived in it at least 3 years in a row and until any day in the two years before the date of transfer.

 

Once again, you could be taxed by both your country of origin and Spain so it is essential to check if an international the Double Taxation Agreement has been signed between Spain and the country in question to make sure we can apply for double taxation allowance.

 

Our team will carefully analyse your situation to avoid double payments and to ensure the maximum tax savings as possible.

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