What is capital gains tax in Spain?

Capital gains is a municipal tax that is applied when selling or donating a home to the City Council that manages the urban land.

Who should pay the capital gains tax in Spain?

The selling part of the house is the one who must pay the city tax.
On the contrary, if it is a donation, the person who receives the property will be the one who must pay the tax to the City Council where the property is located.
If it is an inheritance, the beneficiary must also pay the tax.

What is the main problem about capital gains?

The real estate crisis does not end when one thinks it ends, there are always repercussions, and the payment of capital gains value is one of them.

Previously, having paid an exorbitant price for a home that was not worth it (or worse, having been mortgaged) when the property was sold, whether it was profitable or not, the tax had to be paid.
Since the ruling of the Constitutional Court in Spain of July 2018, this tax can be canceled if a sale has generated a loss, but the collection can be requested in case of earnings.

How to calculate this tax in Spain? Approximately …

If you want to know the amount you should pay the best will be to ask in the same City Hall where the home has been sold. There you will be informed of the amount you would have to pay. If you need more information about that go to Contact
The amount to be paid from capital gains tax is calculated according to the last transaction, but with a maximum term of 20 years. For this purpose, a certain percentage that varies greatly between the different municipalities is applied to the cadastral value.

Here an (approximate) example of how it would be:

The tax base is calculated according to the cadastral value of the land and the time that the seller or donor party in their possession has had.
A person buys an apartment in 2008 and sells it now. The cadastral value amounts to 150,000 euros. The Town Hall of the housing population puts a revaluation rate, which will be the result of 3.5 multiplied by the eleven years that have now passed in 2019.
3.5 x 11 years = 38.5%
This figure may vary depending on the municipality. As a result, we have a 38.5% that applied to the cadastral value of 150,000 euros leaves a tax base of 57,750 euros.

150,000 ___________ 100% x = 57,750.- €
x ___________ 38.5%

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