For the purposes of informing on the main novelties introduced in the Law 26/2014, which amends the Income Tax Law and the Non Resident Income Ta Law in Spain, we set out below the following points to be taken into account, for the calculation of the capital gains tax in Spain arising in the transfer of real estate property.
- Elimination of monetary correction coefficients in Spain.
The application of the coefficients of update, to correct the acquisition value of the property based on the date of purchase, has been removed.
2.- The coefficient of “abatement” (abatimiento) are maintained.
In order to apply these reduction coefficients, it is stated a maximum sale price of the property in Spain of 400,000 €.
This limitation of 400,000 € applies, not to the sale of each asset individually, but all of them, regardless of the sale of each one of them occurring at different times.
3.-Exemption of capital gain tax in Spain for individuals over 65 years.