PROPERTY in Marina Alta. Basic recomendations CHECK LIST. Before sign any document find an INDEPENDENT lawyer. 1. Check who the owner is. If it is not the owner the person who signs must have a power of attorney. 2. It is very important to check if the property is free of charges, mortgage, or tenants via Land Registry. 3. Community fees. Letter of the administrator. 4. Price and payment: a certain amount that the buyer gives to the seller as a signal. 5. Selling fees: There are fees related to the purchase negotiation. Who pays?... Municipal Taxes. Seller Notary fees. negotatiable Registration fees. negotatiable 6. Check if the property has any penalties at the town hall 7. Check the urban situation of the property via Catastro and townhall. If in the future there are any urban projects in the area. Cadastral data: Descriptive and graphic cadastral certification that will be incorporated into the deeds to verify the coincidence or discrepancies between the cadastral data, the Pro
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Capital Gains Arising from the Sale of Buildings
ReplyDeleteCapital gains obtained as a result of selling a property are subject to tax. This income shall be deemed to be accrued when the property is transferred.
In general, net gains shall be calculated based on the difference between the cost price and transmission value of the property.
The cost price consists of the real amount for which the asset being sold was acquired, plus the sum of the costs and taxes inherent in the acquisition, excluding interest, paid by the transferor. This value will be corrected, according to the year in which the property was acquired, by applying updating coefficients that are established annually in the General State Budget Act.
For assets sold in 2012, the coefficients are as follows:
Year of acquisition Coefficient
1994 and before 1,3037
1995 1,3773
1996 1,3302
1997 1,3037
1998 1,2784
1999 1,2554
2000 1,2313
2001 1,2071
2002 1,1834
2003 1,1603
2004 1,1375
2005 1,1151
2006 1,0933
2007 1,0719
2008 1,0509
2009 1,0303
2010 1,0201
2011 1,0100
2012 1,0000
However, if the investment was made on 31 December 1994, a coefficient of 1.3773 is to be applied.
The application of a coefficient other than the unit requires the investment to have been made at least one year in advance of the date of transfer of the real estate asset.
If the building being transferred had been rented, the value determined should be reduced by the amount of the depreciation corresponding to the rental period. This depreciation will also be updated in accordance with the year to which it corresponds.
The transfer value is the real amount for which the disposal was made, reduced by the amount of any costs or taxes related to the transfer paid by the seller.
As a result, the capital gain on which taxation will be paid consists of the difference between the transfer value and the cost price, determined as described above.
Nevertheless, if the property is transferred by an individual who purchased it prior to 31 December 1994, net gains will be subject to a transitory scheme and the previously calculated figure will be reduced.
If the transferor acquired the property on two separate dates or the property has been renovated, calculations must be made as if there were two net gains.
Partial exemption:
ReplyDeleteAn exemption applies to 50 percent of the capital gains resulting from the sale of urban real estate in Spain which has been purchased between 12 May 2012 and 31 December 2012. This partial exemption is not applicable:
In the case of natural persons, when the real estate has been purchased by or transferred to their spouse, to any person related to the taxpayer either via the direct line or collateral lines, by blood or by affinity, up to and including the second degree, to an entity which falls under any of the conditions set forth in article 42 of the Code of Commerce, either in relation to the taxpayer or any of the other persons mentioned above, regardless of their place of residence and the obligation to formulate consolidated annual accounts.
In the case of entities, when the real estate has been purchased by or transferred to a person or entity that falls under any of the conditions set forth in article 42 of the Code of Commerce, regardless of their place of residence and the obligation to formulate consolidated annual accounts, or to the spouse of the above mentioned person or any other person related to said person via the direct line or collateral lines, by blood or by affinity, up to and including the second degree .
Tax rate (see table):
Year income accrued 2011 2012-2013
Tax rate
19%
21%
The person who acquires the building, whether resident or non-resident, is obliged to withhold and deposit with the Public Treasury 3% of the consideration agreed. For the seller this amount constitutes a payment on account for the tax on the income arising from the transfer. Therefore, the purchaser will give a copy of form 21, used to deposit the withholding, to the non-resident seller, so that the seller can deduct this withholding from the tax to be paid as a result of the tax return including the capital gain. Should the amount retained be greater than the tax liability, it is possible to obtain a refund of the difference.
In the event that the withholding is not deposited, the building will remain liable to payment of the lower of the amount of the withholding or payment on account and the corresponding tax.
Form 210, approved by Order HAC/3316/2010, of 17 December, recording income type 28.
Means of filing:
- on paper, generated by printing the form after it has been completed in on Tax Agency's the Internet portal.
- Electronically, via the Internet.
If the property is under shared ownership by a married couple in which both spouses are non-resident, a single self-assessment may be provided.
When to file the tax return: three months from the end of the period that the person acquiring the building has to deposit the withholding (this time period, in turn, is one month from the date of the sale).
Refund of excess withholding. Should there be a capital gains loss, or if the tax withholding is greater than the whole payment due, you will have the right to have the excess amount withheld refunded. The refund procedure is initiated by filing the tax return form.
The Agency shall, where appropriate, make a provisional payment within the six months following the end of the established period for filing of the form. If the provisional payment is not made within this time period, the Tax Agency shall voluntarily refund the excess owing over the self-assessed amount. Once six months have elapsed without payment having been ordered, for reasons not attributable to the taxpayer, the amount pending refund shall accrue late payment interest.
From Agencia Tributaria
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