We own an apt. in mallorca . What is the cost to transfer his share to me.?

Spanish Property Insight Forums Spanish Property Forums Property Questions & Answers We own an apt. in mallorca . What is the cost to transfer his share to me.?

Viewing 7 reply threads
  • Author
    Posts
    • #224433
      marionlucyg
      Participant

      My partner and I own an apartment in Mallorca. We are not married. He would like to transfer his half share to me.  Please can you tell me what costs are involved.  Thank you.

    • #224549
      Anonymous
      Inactive

      If you’re tax resident in Spain I believe a liability for CGT for both parties arises on completion of the transfer, regardless of whether there is any monetary consideration involved – the Spanish taxman will use the deemed market value of the property as the basis of calculation of said liability.

    • #224825
      marionlucyg
      Participant

      Thanks for your input, John.

      We are non-resident. Does this make a difference ?

       

    • #225314
      tomar
      Participant

      Hi.

      If you own the apartment let’s say 50 -50 you can make a dissolution of the ownership.

      This is different to make a sale or other transmission.

      The difference are in the Taxes you gonna pay.

      If he sales or gives his 50% to another 3rd person, then transmission tax (8 to 10%, depending of the value) has to be paid

      But if you are dissolving a co-ownership you have to pay (Actos Jurídicos Documentados)  Stamp Duty Tax (1.2%) + plusvalía tax.

      So, dissolving the co ownership is cheapest than another transmission.

      Doesn’t matter if you are married or not.

       

      Hope this helps: Toni M

       

    • #225315
      marionlucyg
      Participant

      Thank you Toni,
      Making a dissolution of the apartment is not something we have heard of. It seems to be a possible way forward so we will look into it further and hopefully come up with a resolution to our problem. Thank you.

      • #225448
        macgd016
        Participant

        Hi Toni,

        Your view on dissolving a co-ownership looks quite attractive but if no money changes hands wouldn’t the person taking full ownership have to pay Gift Tax on 50% of the value?

    • #225317
      tomar
      Participant

      Happy to be useful

      Regards

       

       

    • #225449
      tomar
      Participant

      Dera Macgd016.. Of course money change hands. The one who will have 100 per cent ownership must pay the value of the other 50%. This is NOT a gift.

      Price has to be paid (if not it’s a gift)  and if you make a gift you pay gift tax (tax deppends of the relationship, couple, father to soon, not relative   )

      If you sale the 50% you pay sale tax (ITP) that’s 8% up to 10, depending of the value

      If you dissolve you pay Stamp Dutty Tax (1,2%) BUT also you have to pay the value of the 50% 

      if not will be considered as a gift so, tax authorities will claim you the gift taxes

       

      On top of this is the one who “sells”, his 50% makes profit has to pay taxes for that.

       

       

       

    • #225450
      macgd016
      Participant

      Hi Toni, Thank you for the clarification.

Viewing 7 reply threads
  • The forum ‘Property Questions & Answers’ is closed to new topics and replies.