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José M spanish attorney
Next year you will have to make the tax declaration and we are going to find out the data
You have to pay 21 per cent of the first 6.000 euros profit and 19 per cent of the rest
So we have to take the sold out price 56.000 euros and rest the buy cost ( you have to look at the escrituras the price paid in pesetas ) rest the cost of the register and notario, rest the cost of the improvements and equipement, and you will got the profit
Once you know the profit, make two steps, first 6.000 euros are charged 21 per cent ( 1260 euros) and 19 per cent for the rest
The sum paid now for plusvalias to spanish tax office, is deductible to the final sumdue to pay last year
Ask the agent if he has only deduce for personal taxes or if he has paid also plusvalias of the City hall
In the next 6 months from the sold out fact you have to pay plusvalias in the city hall
So, may nbe the agent has deduced two sums, one for the spanish tax office and aonother one for the City hall
If you tell me the data of the price in pesetas paid when you bough it I can make the numbers for you
The City hall plusvalias is a tax which I can no know the price due to pay, it must ne asked in the city hall with the catastral reference of the propiety
I will be here if you need more help
I am on line
As you write I am going to resume the situation now
You have to pay two differents taxes
Plusvalia in the City hall and personal taxes next year in the personal tax declaration
Jose I gave you all the details of the cost of the apartment including improvements and cost of Fixtures etc which were included in the sale price.
But I have no the price declare in escrituras when you bought it
You need that data and you will find it in the escrituras
So, take the selling price, rest the price you declared then, rest the cost of the furniture and equipment, and rest the cost of notario and propiety register, at the end rest the price paid to the city hall for plusvalia, and then you will have a sum, the profit
You will have to pay 21 per cent for the first 6.000 euros profit and 19 for the rest. The sums deduced now for the agent are paid in advanced, so deductible next year
In UK you used to be able to claim an increase in the cost depending on the years the asser
In Spain when you bought it was used to be the same, but no now
In the UK you were allowed an indexation depending on the number of years you held the asset;does this not apply in Spain.
Even, for the next year, 2014, they are thinking to increse the sum due to pay 300 per cent, but they are changing his mind now
No, now, the time you were propietor now is no amtter to pay yaxes
It was when you bought but no now
Now they take care just on profit
And they taxes the profit this way, (21/19 per cent) and they do not care the time elapsed since you bought it
Your reply has been very useful.