April 2, 2018 at 10:31 am #224433
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.
April 9, 2018 at 10:57 am #224549AnonymousInactive
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.
April 11, 2018 at 3:18 pm #224825
Thanks for your input, John.
We are non-resident. Does this make a difference ?
April 30, 2018 at 6:43 pm #225314
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.
April 30, 2018 at 9:20 pm #225315
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.
May 1, 2018 at 7:58 am #225317
Happy to be useful
May 5, 2018 at 12:42 pm #225449
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.
May 5, 2018 at 3:44 pm #225450macgd016Participant
Hi Toni, Thank you for the clarification.
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