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Capital Gains Tax
Capital Gains Tax
by JustGinger » Fri Feb 09, 2024 5:13 pm
Hi All
We will be applying for residencia in 2025 and moving permanently into what is now a holiday home.
We have had a lot of work done on the property which will have added a considerable amount to its market value.
The house will be our main residence although we will be keeping a small flat back in the UK.
If we come to sell our main residence in Spain to, possibly, downsize in the future, would we be subject to capital gains or any other taxes.
We will obviously seek financial advice before or during our residencia application but it would be useful to have a broad idea of what taxes might apply to any future house sale.
Thanks in advance.
We will be applying for residencia in 2025 and moving permanently into what is now a holiday home.
We have had a lot of work done on the property which will have added a considerable amount to its market value.
The house will be our main residence although we will be keeping a small flat back in the UK.
If we come to sell our main residence in Spain to, possibly, downsize in the future, would we be subject to capital gains or any other taxes.
We will obviously seek financial advice before or during our residencia application but it would be useful to have a broad idea of what taxes might apply to any future house sale.
Thanks in advance.
- JustGinger
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Re: Capital Gains Tax
by marcliff » Fri Feb 09, 2024 6:17 pm
b
Last edited by marcliff on Fri Mar 08, 2024 8:09 am, edited 1 time in total.
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Re: Capital Gains Tax
by JustGinger » Fri Feb 09, 2024 6:24 pm
Thanks Marcliff. That's really helpful
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Re: Capital Gains Tax
by Shiva » Fri Feb 09, 2024 6:34 pm
Unfortunately many advisers say that since 2015 inflation is no longer taken into account when calculating cgt in Spain. It's the flat difference between purchase and selling, minus legal costs etc, that makes the ' net profit' on which cgt is levied.Hence you really need to be aware of the potential for a large cgt bill if none of the exemptions ( over 65, reinvestment in main home, etc) apply.
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Re: Capital Gains Tax
by JustGinger » Fri Feb 09, 2024 6:38 pm
Can we deduct the cost of the improvements from the profit? Do we have to have invoices to prove the costs?
Perhaps getting into too much detail for now, but if anyone knows....
Perhaps getting into too much detail for now, but if anyone knows....
- JustGinger
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Re: Capital Gains Tax
by marcliff » Fri Feb 09, 2024 6:47 pm
l.
Last edited by marcliff on Thu Mar 21, 2024 9:02 pm, edited 1 time in total.
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Re: Capital Gains Tax
by MALTHOM » Sat Feb 10, 2024 9:12 am
If you carried out work to your property, and to reduce any CGT liability, it is important you get the value of the work formally registered on your house deeds as this is tken into account when looking at any future sale value verses purchase costs.
On an other tax issue, remember that inheritance tax has been abolished in the Valencia region.
On an other tax issue, remember that inheritance tax has been abolished in the Valencia region.
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