Spanish mortgage – tax if you sell

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This topic contains 1 reply, has 2 voices, and was last updated by Profile photo of Anonymous Anonymous 10 years, 12 months ago.

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  • #51419
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi all,

    Would welcome opinions from those with more financial prowess than myself reagrding mortgage on spanish property. My question is:

    If I have a mortgage on my property, is this taken into account and does this reduce my tax liability if I sold? For example, a 60’000 euro mortgage on a property valued at 120,000 euros, would I pay tax on the total value or would the 60,000 outstanding on the mortgage be deducted before my tax liability therefore making the tax payable only on the 60,000 not owed to the bank?

    I welcome your advice as always.

  • #60166
    Profile photo of Anonymous
    Anonymous
    Participant

    You are only liable for Capital Gains Tax on the profit you make = What you sell it for minus what you paid for it + any allowable expenses.

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