News / Real Estate

Purchasing a property during 2012 implies 50% savings on taxes when selling

On the 11th May the Spanish government approved the Royal Law Decree 18/2012, concerning the restructure and sale of real estate assets in the financial sector, in order to encourage the sale of property in Spain. This new measure will allow buyers who acquire an urban property before the 31st December to save 50% on capital gains tax in a subsequent sale.

Concerning the Company Tax, Income Tax and Non-Resident Income Tax, a partial exemption has been introduced for the profit in the sale of urban properties that are acquired as from the entrance in force of the Royal Law Decree and until the 31st December 2012, and when certain requirements are complied with.

Non-resident income tax
Exempt 50 per cent of capital gains obtained without mediation of a permanent home in Spain, arising from the sale of urban properties situated in Spanish territory, and that were purchased as from the 12th May 2012 and up to the 31st December 2012. The exclusion of the application is contemplated in the same situations of individuals or companies that are resident.
Individual income tax
Exempt 50 percent of capital gains revealed on the sale of urban property acquired by onerous ownership as from the 12th May 2012 until the 31st December 2012. When the sold property be the normal home of the tax payer and the amount reinvested be less than that received, there will be exempt from tax the proportional amount of capital gains obtained that corresponds to the amount reinvested.

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