CGT on a reformed property

This topic contains 4 replies, has 3 voices, and was last updated by  Aunty Val 2 years, 10 months ago.

  • Author
    Posts
  • #183979

    dredski
    Participant

    Hi, I just saw another post about CGT and it reminded me to ask.

    We have a house in Mallorca and we are thinking about selling. We have spent a fair amount of money reforming and extending the property. Are the reform costs involved taken into account when CGT is calculated? If they are, is there a formula?

    Thanks.

  • #183980

    paul
    Participant

    I wouldn’t woory too much…
    If you are a non-resident they keep 3% of the selling price towards CGT due….Just swallow that and get out of the country. How are they going to track you down for more?
    Of course, if you intend to stay in Spain that is a different matter.

    Paul.

  • #183985

    Aunty Val
    Participant

    In reply to dredski – please make sure you have all the correct licences for the reform as well as all the receipts for materials and contractors.

    As far as I am aware, unless you can provide all the correct documentation in respect of the reform – licencia de obra, final de obra etc etc, then you don’t stand a chance of offsetting this against CGT.

  • #183997

    dredski
    Participant

    Thanks both for your replies. We do have all the official documentation and receipts so that is covered.

    Is the CGT based on the original cadastral versus a current valuation minus some percentage of reform costs?

  • #184036

    Aunty Val
    Participant

    The CGT is calculated from the difference between the original escritura value paid, compared with the current sale price as per the escritura.

You must be logged in to reply to this topic.