Spanish Property Insight › Forums › Spanish Property Forums › Property Questions & Answers › 7% tax on property purchase vs capital gains tax › Re: Re: 7% tax on property purchase vs capital gains tax
If in the future you sell for 1.6 they will look at the 900.000€ you paid + 96.000€ in tax. So 18% on the difference between 1600000 and 996000.
This is not the same as the difference between 1600000€ and 1296000€.
So what you are saying is they when you buy you are taxed on the 1.2million imaginary price but when you sell you are taxed at the 960k real price?
I get the message; do not buy property in Spain.
One question, will there be time, a few years hence when these imaginary valuations can no longer be justified?
Hi peter, sorry if it was not clear.
capital gains is based on revenue minus costs. the 1.2 is a hypothetical figure. What I am saying though is he has to pay nay additional tax, due to minimal sales price given in hacienda, etc… then those costs can be added when working out capital gains in the future.
you can argue these valuations now. But the sensible thing it to find out this figure first. Only takes a day to find out the minimum.