Question: I have heard that the Capital Gains Tax in Spain has been reduced. Does this really mean that I can sell my property and keep more of the profit.
Answer: Yes and no. This depends on your circumstances. At the beginning of this year the Capital Gains Tax fro non-residents was reduced from 35% to 18%. For residents the rate of tax actually increased from 15% to 18%. Therefore if you are non-resident in Spain then you will have to pay less Capital Gains Tax in Spain. However, this isn't the end of the story as you still have to declare the Capital Gain in your home country and possibly pay any difference there. If the country that you are tax resident in has a double taxation treaty with Spain then you will be able to offset the tax that you have paid in Spain against the tax that you should pay in that country – meaning that you should only have to pay the difference (if there is any).
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