Reduction in the CGT on sale proceeds

In order to encourage real estate property investments, the Spanish Government has approved a Royal Decree to be effective as from 11th May.

Here is an overview of the new provisions. For details as to how it might affect you please contact your financial advisor.

The main measure is a reduction of 50% in the Capital Gains Tax on sale proceeds for properties bought between 12^th May and 31^st December 2012. This is regardless the future sale date.

The tax remission benefits both natural persons (residents and non-residents) and legal entities, under the following conditions:

-        The property must have been purchased between 12^th May and 31^st December 2012

-        It must be an urban property (residential or commercial)

-        The buyer and seller should not have any connection, either corporate or family

-        The property should not be considered a commercial development or venture.

The tax reduction will be applied in the annual Income Tax declaration or in the company tax of the fiscal year in which the capital gain was generated.

Provided that the applicant meets all necessary requirements, the capital gain to a non-Spanish tax resident on sale of a Spanish property is taxed as follows:

Sale in 2012-2013             Before:  21 %

                                          Now:      10,5%

Sale in 2014 or after:         Before:  19%

                                           Now:      9,5%

The tax on capital gain to a Spanish tax resident is as follows:

Sale in 2012-2013             Before: until 27% (depending on Gain)

                                           Now:     until 13,5%

Sale from 2014 on             Before: until 21%

                                           Now:    until 10,5%

In the case of companies, the Capital Gain is taxed at approximately 15%.

We would like to remind you that the tax for newly constructed properties remains at 4 % until 31^st December 2012.

Puerto Portals beach at 2pm today ...

A sweltering 38 degrees and rising ... here´s a photo taken 15 minutes ago of Puerto Portals beach, with the marina in the distance.

Hottest part of the day ............. the forecasters say the temperatures will drop "a little" at the weekend .....

Silver Point 3 bedroom apartment for sale with magnificent sea and marina views

Beautiful newly reformed south facing apartment in the most desirable complex overlooking the fabulous Puerto Portals yacht marina.

Large living area featuring a splendid American style kitchen with breakfast bar and the latest appliances.

 Patio doors lead to a spacious unoverlooked terrace offering perfect sea views.

The master bedroom suite has an beautifully finished en-suite bathroom and patio doors opening onto the sea view terrace. There are 2 further double bedrooms both with en-suite bathrooms finished in modern ceramics.

This immaculate in Silver Point property enjoys stunning sea views and is conveniently located for the yacht marina and all its facilities. 

Includes heating and aircon throughout, latest sound system, marble floors, garage parking space, large community swimming pool area and gardens with marina direct access.

For more information including up-to-date price click here - Ref 1136.

VAT rise in Spain as from 1st September

There has been recent tax news introduced by the Royal Decree Law 20/2012. This regulation has increased the general VAT tax rate from 18% to 21% and the reduced tax rate from 8% to 10%.  The new tax rates will be applicable from September 1st 2012.

Additionally, Personal Income Tax withholding over the income paid to professionals are increased from 15% to 21% (the new withholding tax rate will be applicable from September 1st, 2012 until December 31st, 2013).