Capital gain Tax in Spain; The new coefficient of readjustment of the acquisition value of a property in Spain are set out in the national budget for the year 2014, which entered into force pursuant to the Spanish Law 22/2013 of 23rd December, published in the Official State Gazette (B.O.E.) of the 16th.
It is essential to take into account the readjustment coefficients indicated below when calculating the increase of wealth for the purposes of Personal Income Tax (I.R.P.F), Non-resident Income Tax and Wealth Tax, among other reasons, for the transfers of real properties not linked to economic activities carried out during the year 2014.
Year of Acquisition Coefficient 1994 and prior 1.4050 1995 1.4050 1996 1.3569 1997 1.3299 1998 1.3041 1999 1.2807 2000 1.2560 2001 1.2314 2002 1.2072 2003 1.1836 2004 1.1604 2005 1.1376 2006 1.1152 2007 1.0934 2008 1.0720 2009 1.0510 2010 1.0406 2011 1.0303 2012 1.0201 2013 1.0100
For a correct calculation of capital gain in Spain, these are some of the basic rules to be followed:
1.ª The readjustment coefficients must be applied to the acquisition price and the corresponding recorded amortisations, without taking into consideration the amount of the net value increase resulting from the readjustment operations.
2.ª The capital gains or losses will be the result of deducting the difference between the transfer value and the acquisition value of the Spanish property, readjusted with the abovementioned coefficients.
The acquisition value will be the actual amount for which the transferred object was acquired, increased by the expenses and rates inherent to the acquisition, excluding interests, paid by the individual transferring the property. Depending on the year of acquisition, this value will be adjusted by applying the relevant readjustment coefficients mentioned above.
The transfer value will be the actual amount for which the transfer was carried out, reduced by the expenses and rates inherent to the transfer and paid by the seller.
Consequently, the difference between the transfer value and the acquisition value obtained by applying these coefficients will be the Spanish capital gain subject to taxation.
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Do not hesitate to contact one of the economists and tax advisers of our firm Arcos & Lamers Asociados if you have any query of a legal or fiscal nature.
María Teresa Arcos, lawyer in Marbella.
Wim Lamers, economist in Marbella.
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