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.?

This topic contains 8 replies, has 4 voices, and was last updated by  macgd016 3 months, 2 weeks ago.

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  • #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

    John Thompson
    Participant

    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.

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