50% off "CGT"

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This topic contains 29 replies, has 8 voices, and was last updated by Profile photo of Fuengi (Andrew) Fuengi (Andrew) 4 years, 6 months ago.

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  • #56843
    Profile photo of Anonymous
    Anonymous
    Participant

    Interesting story on the news feed, rather a good idea, but sadly depends on people believing the tax promise will actually be honoured by a future government. I wouldn’t put money on it, would you?

  • #109154
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    Anonymous
    Participant

    Rather hard to believe in present times-where did this informacion come from ?

  • #108954
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    Anonymous
    Participant

    Rather hard to believe in present times-where did this informacion come from ?

  • #109161
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    Anonymous
    Participant
  • #108961
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    Anonymous
    Participant
  • #109168
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    Anonymous
    Participant

    Thank-you Mark but only applies to properties purchased this year and refers to the Plus Valia surely which is not very much anyway. What they need to do is ABOLISH INHERITANCE TAX.In Italy foreign buyers pay very little or nothing so that property can be passed on without these confiscatory taxes that often force beneficiaries to sell and on a depressed market therefore a retired person would find less inhibition in buying.

  • #108968
    Profile photo of Anonymous
    Anonymous
    Participant

    Thank-you Mark but only applies to properties purchased this year and refers to the Plus Valia surely which is not very much anyway. What they need to do is ABOLISH INHERITANCE TAX.In Italy foreign buyers pay very little or nothing so that property can be passed on without these confiscatory taxes that often force beneficiaries to sell and on a depressed market therefore a retired person would find less inhibition in buying.

  • #109170
    Profile photo of Anonymous
    Anonymous
    Participant

    This is the issue with Spain. One has to torture anything out of them ( a bit like tooth extraction ) It is always peanuts, to little to late or irrelevent/insignificant in the over all scheme of things.

    An average plus valia savings will be probebly less than perhps a BA price of a high season ticket.

  • #108970
    Profile photo of Anonymous
    Anonymous
    Participant

    This is the issue with Spain. One has to torture anything out of them ( a bit like tooth extraction ) It is always peanuts, to little to late or irrelevent/insignificant in the over all scheme of things.

    An average plus valia savings will be probebly less than perhps a BA price of a high season ticket.

  • #109175
    Profile photo of Chopera
    Chopera
    Participant

    @Ptr wrote:

    Thank-you Mark but only applies to properties purchased this year and refers to the Plus Valia surely which is not very much anyway. What they need to do is ABOLISH INHERITANCE TAX.In Italy foreign buyers pay very little or nothing so that property can be passed on without these confiscatory taxes that often force beneficiaries to sell and on a depressed market therefore a retired person would find less inhibition in buying.

    Nope. What they need to do is INCREASE INHERITANCE TAX and INTRODUCE LAND TAX and GET RID OF INCOME TAX COMPLETELY. Not that I like taxes, but since they are here to stay it would be better to tax unproductive wealth tied up in property rather than tax productive work.

  • #108980
    Profile photo of Chopera
    Chopera
    Participant

    @Ptr wrote:

    Thank-you Mark but only applies to properties purchased this year and refers to the Plus Valia surely which is not very much anyway. What they need to do is ABOLISH INHERITANCE TAX.In Italy foreign buyers pay very little or nothing so that property can be passed on without these confiscatory taxes that often force beneficiaries to sell and on a depressed market therefore a retired person would find less inhibition in buying.

    Nope. What they need to do is INCREASE INHERITANCE TAX and INTRODUCE LAND TAX and GET RID OF INCOME TAX COMPLETELY. Not that I like taxes, but since they are here to stay it would be better to tax unproductive wealth tied up in property rather than tax productive work.

  • #109179
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    Although the measure is going to be boon to those who buy this year, for those that are currently undecided or waiting to see how thee market progresses, I don’t see this reduction enticing them.

  • #108988
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    Although the measure is going to be boon to those who buy this year, for those that are currently undecided or waiting to see how thee market progresses, I don’t see this reduction enticing them.

  • #109182
    Profile photo of Anonymous
    Anonymous
    Participant

    @chopera wrote:

    @Ptr wrote:
    Thank-you Mark but only applies to properties purchased this year and refers to the Plus Valia surely which is not very much anyway. What they need to do is ABOLISH INHERITANCE TAX.In Italy foreign buyers pay very little or nothing so that property can be passed on without these confiscatory taxes that often force beneficiaries to sell and on a depressed market therefore a retired person would find less inhibition in buying.

    Nope. What they need to do is INCREASE INHERITANCE TAX and INTRODUCE LAND TAX and GET RID OF INCOME TAX COMPLETELY. Not that I like taxes, but since they are here to stay it would be better to tax unproductive wealth tied up in property rather than tax productive work.

    Very good point.

  • #108994
    Profile photo of Anonymous
    Anonymous
    Participant

    @chopera wrote:

    @Ptr wrote:
    Thank-you Mark but only applies to properties purchased this year and refers to the Plus Valia surely which is not very much anyway. What they need to do is ABOLISH INHERITANCE TAX.In Italy foreign buyers pay very little or nothing so that property can be passed on without these confiscatory taxes that often force beneficiaries to sell and on a depressed market therefore a retired person would find less inhibition in buying.

    Nope. What they need to do is INCREASE INHERITANCE TAX and INTRODUCE LAND TAX and GET RID OF INCOME TAX COMPLETELY. Not that I like taxes, but since they are here to stay it would be better to tax unproductive wealth tied up in property rather than tax productive work.

    Very good point.

  • #109183
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    Anonymous
    Participant

    While I agree with Chopra. It is another subject.

  • #108996
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    Anonymous
    Participant

    While I agree with Chopra. It is another subject.

  • #109189
    Profile photo of katy
    katy
    Spectator

    @fuengi wrote:

    Although the measure is going to be boon to those who buy this year, for those that are currently undecided or waiting to see how thee market progresses, I don’t see this reduction enticing them.

    If it’s only the plus valia I can’t see how it can be an incentive. Ours was only a few thousand and we had the property for over 10 yrs. 😕

  • #109009
    Profile photo of katy
    katy
    Spectator

    @fuengi wrote:

    Although the measure is going to be boon to those who buy this year, for those that are currently undecided or waiting to see how thee market progresses, I don’t see this reduction enticing them.

    If it’s only the plus valia I can’t see how it can be an incentive. Ours was only a few thousand and we had the property for over 10 yrs. 😕

  • #109198
    Profile photo of Anonymous
    Anonymous
    Participant

    Most “plus valia” is paid by the buyers. In the confusion & the non transparent Spanish buying system. This does not come to light well after the event.

    The burden of this tax no matter how small can be shifted as per the terms of the purchase agreement.

  • #109027
    Profile photo of Anonymous
    Anonymous
    Participant

    Most “plus valia” is paid by the buyers. In the confusion & the non transparent Spanish buying system. This does not come to light well after the event.

    The burden of this tax no matter how small can be shifted as per the terms of the purchase agreement.

  • #109200
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @ Katy. 50% on CGT (incremento patrimoniales) according to Mark article. Not the plus valia paid to townhall on selling
    Saw same a few days ago reported in el Mundo

    @ Shakeel
    plus valia is a tax paid by the seller. Only time a buyer should pay it is when the vendor is not a fiscal resident. Then it should be withheld at completion.

  • #109031
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @ Katy. 50% on CGT (incremento patrimoniales) according to Mark article. Not the plus valia paid to townhall on selling
    Saw same a few days ago reported in el Mundo

    @ Shakeel
    plus valia is a tax paid by the seller. Only time a buyer should pay it is when the vendor is not a fiscal resident. Then it should be withheld at completion.

  • #109205
    Profile photo of Anonymous
    Anonymous
    Participant

    @fuengi:
    I agree with you & also it is commercially logical as it is the seller who has made this gain. However Spain being Spain & to be fair one can place what ever clause one wants in the contract.

  • #109041
    Profile photo of Anonymous
    Anonymous
    Participant

    @fuengi:
    I agree with you & also it is commercially logical as it is the seller who has made this gain. However Spain being Spain & to be fair one can place what ever clause one wants in the contract.

  • #109206
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    Anonymous
    Participant

    Inheritance Tax starts at 7500 Euros.That is ridiculously low. You can mitigate it by leaving money to people you don’t particularly want to. However if you are a batchelor and want to leave it to a brother he gets crippled on a very small amount. No property under 50000 euro should attract any tax .After all this is money that has been earned and taxed already and in part inherited and tax paid.

  • #109043
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    Anonymous
    Participant

    Inheritance Tax starts at 7500 Euros.That is ridiculously low. You can mitigate it by leaving money to people you don’t particularly want to. However if you are a batchelor and want to leave it to a brother he gets crippled on a very small amount. No property under 50000 euro should attract any tax .After all this is money that has been earned and taxed already and in part inherited and tax paid.

  • #109225
    Profile photo of Anonymous
    Anonymous
    Participant

    @Ptr wrote:

    Thank-you Mark but only applies to properties purchased this year and refers to the Plus Valia surely which is not very much anyway. What they need to do is ABOLISH INHERITANCE TAX.In Italy foreign buyers pay very little or nothing so that property can be passed on without these confiscatory taxes that often force beneficiaries to sell and on a depressed market therefore a retired person would find less inhibition in buying.

    @katy wrote:

    If it’s only the plus valia I can’t see how it can be an incentive. Ours was only a few thousand and we had the property for over 10 yrs. 😕

    Just to clarify, this tax-break concerns the national Spanish capital gains tax as paid in the annual declaración de la renta / tax return, NOT the ‘plusvalía’ municipal tax, which is a different type of capital gains tax paid on the sale of property.

    The Spanish press has reported this as a reduction in the plusvalía, which is misleading.

    A typical blunder by the Spanish Government. They have introduced a tax break that mainly affects foreign buyers, but it’s been very badly communicated, so it won’t achieve its objective of stimulating sales. All it will do is reduce revenues. Great!

  • #109247
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    Anonymous
    Participant

    Does, this means that the Spanish capital gains gains tax has now been reduced by 50% ( 2012/13 21%) i.e. now becomes 10.50% ??? for a period.

  • #109266
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @shakeel wrote:

    Does, this means that the Spanish capital gains gains tax has now been reduced by 50% ( 2012/13 21%) i.e. now becomes 10.50% ??? for a period.

    as i understand it. If you buy today, when you go to sell, should you make a profit on your second home, then you only pay 50% of the capital gains you would normally pay. There does not seem to be a limit in regards to when you sell.

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