If you are a person interested in venturing into the real estate business in Spain, you should be aware of the taxes that you must pay. Maybe you have heard about the “plusvalia” tax or capital gains tax, but many may not even know about it. You may ask yourself: What is plusvalia according to the tax laws in Spain? How and when should be paid? Why this tax should be paid? Our firm has the tools and the interest to explain and help you to solve all your doubts and inconveniences on this topic with great efficiency. In GM Lawyers in Marbella, we are experts in tax law in Marbella.
More about Plusvalia
In Spanish law, the Capital Gains Tax is the tax generated by any increase in the value of some urban land. The generating event is the transfer of the property by any means, such as a sale or inheritance.
Which are the effects of the Plusvalía in Marbella?
The amount that you have to pay on this tax in Marbella will vary depending on various factors such as:
- City hall rate
- The years of possession (the longer, the more you have to pay)
- The cadastral value of the property
- The tax rate corresponding to the number of years of the property
This is only a list of the things that may affect the amount to pay, but you have to use the appropriate formula and you must take into account the regulations in force for the date.
Who is exempted to pay this tax?
Some of the situations were a capital gain is produced but it does not obligates you to pay the capital gain taxes are:
- The contributions of the spouses to the conjugal society.
- Transfers of property in the payment of the common assets of the spouses.
- Transfers of ownership of real estate between spouses or in favor of their children in compliance with the judgment of matrimonial separation or divorce.
- The transmissions of goods by virtue of works of conservation or improvement of goods considered historical-artistic or that have been declared individually of cultural interest.
- The increases in value when the taxpayer are persons or entities that are regulated by law such as The State, the Autonomous Communities, etc.
In resume, that is what can be understood by plusvalia tax law, so as you can see is a procedure that needs a good tax lawyer. We can very easily offer you a guide with capital gain tax as this is a difficult matter.