capital gains

[GLYNN]

Dear sirs.
I have owned my property for six years, if I were to sell now what level of capital gains tax would be payable and are there any other taxesdue on the sale price.

Yours sincerely.

[Fontanals Solicitors]

The Capital gains tax for a sale of a property, which affects the wealth of the seller (profit), will be different depending on whether the sellers are residents or non-residents.
For residents, if the sale takes place before the 31st of December, the Income tax is the 15% and the 6 years of ownership will be taken into account.
For non-residents, capital gains tax will be 35% of the profit.
However, I would like to inform you that there is a project to unify the tax percentages between residents and non-residents to the 18%. This project could be into force from 1st of January 2007, should it be published in the Official Gazette of the Spanish State (Boletin Oficial del Estado) included on the State Budget. For this reason, if you are non-resident, I think it would be better to wait until next year to go ahead with the sale.

We remain at your disposal to any further question you may have.
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FONTANALS SOLICITORS SL, is a solicitors firm whose main aim is to provide judicial and
fiscal advice to other companies and English Speaking Clients
Torrevieja office 96 571 24 53 Fax 96 571 73 31
e-mail: fontanals-solicitors@fontanals-solicitors.com

Guardamar office fax and tel. 96 572 71 32
e-mail: fontanals-solicitors-guardamar@fontanals-solicitors.com