The decision of investing in Spanish Properties is made taking into account the following factors:
- Property location: the property appraisal is different depending on the Spanish Region and area.
- Investment purpose: there are different tax involvements if the property is purchased to resell it or to rent it.
- The safety of the investment: the legal searching made by GM Legal Experts confirms you are investing in the right property.
- Investment way: the investment can be made by Individual or by Company, so a professional and qualified fiscal advice becomes crucial.
By Individual (Non Resident)
- To Rent: 24% Income Tax on gross income.
- To Sell: The 18% Capital Gain Tax on net profit (discounting the 3% retention) and the Increase of the Value of th Land Tax.
By Company
- To Rent: 25% Income Tax on net income (expenses are deductible).
- To Sell: The 25% Capital Gain Tax on net profit (if profit is lower than € 120.000) and the Increase of the Value of the Land Tax.
You may know that for the above two investment hypothesis is posible to claim back the V.A.T.
Should you require further information, please do not hesitate to contact us.
