1. Income tax (capital gains tax) for the seller Capital gains, such as profits from the sale of real estate in Spain, are subject to taxation. On this capital gain, progressive tax rates will be applied which will determine the amount to be paid. A distinction must be made between … Continue reading
The transfer tax is a tax that the buyer of a property must pay during the first month after signing the public sales-purchase deed (escritura de compraventa) and is calculated by applying a percentage depending on the purchase price. The tax rate in Ibiza was, until 2022, between 8 and … Continue reading
Possibility of tax exemption on real estate sales Exempt from capital gains tax are: Persons over 65 years old Those residents over 65 who are selling their property and for the past three years have effected declarations with proof of owner occupancy in their Spanish income tax returns. Sale of … Continue reading
“Residencia fiscal”, Tax residence According to the Spanish Income Tax Law, a person is considered a resident when staying more than 183 days per year in Spain and therefore being fully taxable in this country. In this case the country where the person is registered is not relevant. Notwithstanding the … Continue reading
– GENERAL Foreigners wishing to buy or sell a property in Spain must be in possession of a tax identification number (Número de Identificacion para Extranjeros), NIE number in short. 1. LAND TRANSFER TAX (Impuesto sobre Transmisiones Patrimoniales) When buying real estate, which is not composed of new buildings, you … Continue reading
WHAT DOES N.I.E. MEAN? The NIE (Número de Identificacion para Extranjeros) is a tax identification number for any foreigner who does not have the Spanish nationality but would like to do business in Spain. This includes, for eg. buying or selling real estate or vehicles, bank transactions, etc. WHAT DO … Continue reading
TAX INCREASE Right at the beginning of 2013 tax increases were approved by the Spanish Government and the Government of the Balearic Islands which equally relate to resident and non-resident property buyers and owners: Real estate transfer tax for buyers The new tax rate is between 8% and 10% and, … Continue reading