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.?
- This topic has 8 replies, 4 voices, and was last updated 2 years, 9 months ago by
macgd016.
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April 2, 2018 at 10:31 am #224433
marionlucyg
ParticipantMy 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.
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April 9, 2018 at 10:57 am #224549
Anonymous
InactiveIf 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.
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April 11, 2018 at 3:18 pm #224825
marionlucyg
ParticipantThanks for your input, John.
We are non-resident. Does this make a difference ?
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April 30, 2018 at 6:43 pm #225314
tomar
ParticipantHi.
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.
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April 30, 2018 at 9:20 pm #225315
marionlucyg
ParticipantThank 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. -
May 1, 2018 at 7:58 am #225317
tomar
ParticipantHappy to be useful
Regards
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May 5, 2018 at 12:42 pm #225449
tomar
ParticipantDera 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.
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May 5, 2018 at 3:44 pm #225450
macgd016
ParticipantHi Toni, Thank you for the clarification.
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