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.
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.
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.
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?
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.
Everything you need to know about property in Spain
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