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Will I Need to Pay CAPITAL GAINS TAX in VALENCIA? | BayRadio with Villalux
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Oct 29, 2024
Selling a property here in Spain? You may be liable for capital gains tax on the profits, with the amount depending on region and residency status. In their fortnightly update, Kal was joined by Romy from @villaluxestateagents who explained exactly what you can expect. There were also a look at the make-up of "expats" on the Costa Blanca and news on a couple of brand new listings taken on by the Villalux team. Please Like 👍 and Subscribe 🔔 to our channel if you found this useful Villalux Estate Agents 🌎 https://www.villalux.com / villaluxjavea ☎️ +34 96 579 40 59
View Video Transcript
0:00
Bay radio International on a Thursday
0:02
I'm Cal southernland our bi-weekly
0:04
feature now where we look into the
0:05
property Market here in Spain with our
0:07
partners at villax ry's here how you
0:09
doing Romy I'm good are you yeah we're
0:11
seeing you everywhere you're so busy at
0:12
the moment on all of the Facebook pages
0:15
to do with Bay radio and with villax and
0:17
uh and we keep hearing you all the time
0:19
as well you just said you hear yourself
0:20
or everywhere you go I know it becomes a
0:22
bit annoying after a while you're quite
0:25
famous though cuz people now actually
0:26
come in and ask for you by name yeah
0:28
yeah it's I mean I guess what what doing
0:30
it's working out the way we expected it
0:32
so that that's great um yeah so yeah
0:35
we've been busy again this we inated
0:38
yeah running around I know so uh plenty
0:40
going on in the market selling buying
0:42
owning and renting properties here in
0:45
Spain so uh if you're listening and
0:46
thinking about moving if you've moved or
0:48
even lived here for longer our regular
0:50
updates are for you looking at something
0:53
which I know very little about as we do
0:55
more and more of this I realize I know
0:57
less and less about property and Market
1:00
it's in Spain national capital gains tax
1:04
right what is it exactly first of all
1:06
it's basically it's a tax you pay on the
1:09
net profit um of own property sale like
1:12
of your property and it's a I mean
1:14
there's a lot of sellers that ask us
1:16
that question um once they get to sell
1:18
the property especially when we're
1:19
talking about price it's like okay what
1:22
can we expect that the capital gains STX
1:24
will will be um because of course
1:26
there's a formula I guess there is yeah
1:28
some sort of a formula um and and it's
1:30
really important to to take that into
1:32
consideration because in the end you're
1:33
going to have to pay that over the yeah
1:36
over the price and and it's going to be
1:38
a cost you have to kind of calculate in
1:40
so we're including things like vat land
1:42
registry fees property transfer tax
1:45
legal and notary fees all of that you
1:47
have to deduct from the final sale price
1:50
yeah so that's those are all costs you
1:52
can deduct so basically is like as well
1:54
if you had did any improvements on your
1:56
home if you did I don't know you you
1:58
construct an extra part on to it or all
2:01
these things you can deduct them from it
2:03
so the formula is quite simple is
2:05
basically it's the price you sold your
2:07
property for minus the price you
2:09
purchase it for minus any additional
2:12
costs and expenses you've had um you
2:16
deduct all that um and then of course a
2:19
number comes out of that and over that
2:20
number you pay a certain percentage tax
2:23
so there is kind of like a breakdown for
2:25
it um it depends as well whether you are
2:27
a Spanish resident uh an EU resident or
2:30
non-eu resident the percent different
2:32
percentages exactly yeah so if you're a
2:34
Spanish resident you pay 19% for up to
2:37
6,000 of profit um for 6,000 to 50,000 e
2:42
profit over that amount you pay
2:44
21% and if you have a profit of 50,000
2:48
and up basically from 50,000 and higher
2:51
you pay 23% over that that amount that
2:54
Parts um are there any kind of
2:56
concessions depending on age or whatever
2:58
with that there actually are so there is
3:01
a few concessions uh first of all if you
3:03
reinvest in a new home so that's one of
3:06
them um then of course if you are over
3:08
the age of 65 and if you have lived in
3:10
the property for more than 3 years and
3:13
the third one is that you can get a
3:15
reduction if you have bought a property
3:17
before
3:18
1995 so those are some exemptions and
3:21
like different scenarios where you can
3:23
get some extra um yeah where it's a bit
3:25
more beneficial for you um now we've
3:29
spoken about of course the Spanish
3:30
resident um but if you are which a lot
3:33
of second home owners are of course if
3:34
you are not a Spanish resident but you
3:37
are an EU resident then you pay a flat
3:39
rate of 19% this means that people from
3:42
outside the EU are going to have their
3:43
own rat doesn't it it actually yeah
3:45
exactly it means that so if you're
3:47
outside of the EU you pay
3:49
24% so it is a lot it's it's actually
3:53
it's it's cheaper it's it's it's more
3:55
beneficial if you are yeah at least EU
3:59
EU resident um any any other exemptions
4:02
perhaps for people from from that sort
4:04
of thing residents that live in the
4:06
country in the EU has a at a tax
4:08
agreement with sp there ta agreement
4:10
exact yeah it's a double taxation
4:12
agreements um so that means imagine if
4:15
you are I always use the Netherlands as
4:17
a reference because of course I'm from
4:18
there so if you're a Dutch resident you
4:20
have um a second home here in Spain
4:23
which you sold that means that the tax
4:24
you have paid to Spain over that
4:27
property because you have to pay it to
4:28
Spain because your property is in Spain
4:30
um that will be deducted from the tax
4:32
you would have to pay for that property
4:34
in the Netherlands so you never paid tax
4:36
double okay that's a little bit of a
4:38
mine field and I'm guessing that anybody
4:41
who's about to go through a sale would
4:43
want to have some professional advice to
4:45
help them through all of that yeah sure
4:47
I mean it is really important like I
4:49
said to take that into consideration and
4:51
of course there's a lot of British at
4:52
this moment that think about selling um
4:55
of course after brexit all of a sudden
4:56
they're not an EU resident anymore but a
4:58
non-eu resident which means that the
5:00
percentage went up um so there's all
5:02
these kind of things that they have to
5:03
keep into consideration um of course
5:05
it's a text we just got to we got to pay
5:07
it um but know where you stand yeah that
5:10
always helps it's interesting isn't it
5:12
well we been looking of course in the
5:13
last couple of days at the European
5:15
elections which across this weekend and
5:18
you kind of then start to think about
5:19
Okay so we've seen more Dutch people
5:21
move into say the Javier area well since
5:24
the pandemic I would say perhaps we've
5:26
seen quite a large influx Haven we then
5:27
you start thinking about okay well it
5:29
was a predom cly a Brit area before and
5:31
then what about the other areas
5:33
traditionally you would say that perhaps
5:34
places like altea and CPE have a a large
5:38
Scandinavian but also a large Russian
5:40
and Ukrainian presence don't they
5:41
certainly are tell yeah no it's true and
5:44
it's really I mean you got these
5:46
different towns here let's say the
5:48
cablanca north because that's where we
5:49
at um but every town has their own
5:52
nationality it's kind of that's kind of
5:54
like yeah it's on top basically um yeah
5:57
and so here in Java used to be Brits as
5:59
you wereing saying now we see a lot of
6:00
Dutch um it's the same in morira but
6:03
when you go to Dena just over the
6:06
that that there's a lot of Germans um
6:07
for history as well and actually the
6:10
other day I heard somebody saying um
6:12
that there's a lot of ukrainians over
6:14
there as well at this moment of course a
6:15
lot more Spanish residents so it's two
6:18
towns really close to each other but
6:20
yeah there there's a difference in
6:22
demographics and like
6:23
nationalities Southern cost of blaner as
6:25
well because tarva used to be quite a
6:27
lot of Brits as well pre pandemic and uh
6:29
pre brexit and now it's slightly changed
6:31
I think there are more Russian and
6:33
ukrainians in that area as well yeah and
6:35
of course when you go to old beer I mean
6:37
that in history it was always been like
6:39
kind of like a Dutch Hub to call it like
6:41
that you know if you want to go to like
6:43
the big Dutch Supermarket you go you go
6:46
down there and alil P so that's always
6:48
been like that yeah like you're say like
6:49
ala is a lot of Russian so there's a lot
6:52
of different nationalities going a bit
6:54
it's bit of creep isn't it the more you
6:55
get then the more people know other
6:57
people who are are at home and thinking
6:59
about we just talking to a Dutch guy
7:00
today weren't we who was looking around
7:02
this particular area because somebody he
7:04
knows has got a place in unia so um you
7:07
know it's just like more and more people
7:08
who come know more and more people and
7:10
then you get this kind of influx of
7:11
different nationalities um there are a
7:13
lot of great places to live on the
7:15
castal Blan R well TOA benador rales El
7:18
in the marina alter and um it it's
7:21
probably the most popular part of Spain
7:24
outside of Madrid and Barcelona for
7:26
expats yeah I was actually talking to of
7:29
well I was on a viewing today and I was
7:30
talking to somebody from another agency
7:32
they were a bit more downside I think
7:34
they're in cul actually um and and they
7:36
were talking about the same thing
7:37
because one of the people he was from
7:39
Madrid um and it was a British guy and
7:41
yeah he was saying that I he really
7:43
believed that we're living in the best
7:45
part of Spain climate wise um I mean
7:49
nature wise uh just just the lifestyle
7:52
um he was saying you know in Madrid he
7:54
would have to sometimes I mean he would
7:56
live 20 minutes away from his work but
7:58
some days it could be 3 hours depending
7:59
on the traffic absolutely whereas here
8:02
you know it's it's it's a lot more calm
8:04
uh you come off work you can still do
8:06
things and and I think I mean that all
8:09
that all leads to this increase my my
8:12
daughter frequently refers to it as
8:13
living on holiday little does she know
8:15
you know I know we're all still working
8:17
we're still running around and working
8:19
exactly in July when we step out of the
8:21
office I mean you see everybody craing
8:24
but I I quite like that actually I
8:25
always like it when that comes around
8:27
because it gives you I mean it's a Happy
8:29
Feeling well I tell you what since the
8:30
program moved um from 3 to 7: now 2 till
8:33
6 I really noticed it that extra hour on
8:36
the end um you know it kind of and and
8:38
I'm actually probably enjoying it more
8:40
uh more of the Costa Blanka than I have
8:42
done in the past because of that just
8:43
getting that and got lighter at the same
8:45
time as we changed the time of the
8:47
program you know and um and there's
8:49
plenty to do here it's still great place
8:51
to live cost of living okay a little bit
8:53
more than it used to be but still not
8:55
too bad especially compared to other
8:57
parts of Northern Europe yes and of
8:58
course when you go you drive 20 minutes
9:00
Inland all of a sudden the prices drop
9:02
you can still get the manua Leah for
9:04
what is it like 10 12 exactly so I mean
9:08
it's it's all still Within Reach and of
9:10
course if you want to to dine at the
9:13
fancy restaurant in javia for example
9:15
yeah you're going to pay for that but
9:16
there's still a lot of
9:18
option you remember that yeah I do
9:20
remember yeah cuz I remember the bill I
9:22
remember exactly but there there are
9:24
actually you know even in a few places
9:26
down near the bus station and maybe and
9:28
and also up in the town you can get a 12
9:30
a 12 Euro lunch Dela with three courses
9:35
they still exist can they do yeah yeah
9:37
yeah no that's good I mean in the end
9:39
that's a Spain we kind of knew from like
9:40
you know back in days right you get
9:42
these deals and it's good food um but
9:44
yeah that they will still be and the
9:46
other good thing as well I think that
9:48
we've noticed is that Southern cadel
9:50
Soul south of Spain is quite expensive
9:52
alante 20 27 27.2 3% lower uh cost of
9:57
living uh for than in Malaga so um you
10:00
know we're still doing pretty well we're
10:02
still doing pretty well yeah yeah
10:04
because down there it's it's I mean you
10:05
got of course Mara which is the what is
10:08
it like the center of of wealth you can
10:11
basically say very close to perban which
10:13
used to be the exclusive place but Moody
10:16
with a news story the other day where he
10:18
was saying that it's um it's now
10:19
actually probably it's bombed somewhat
10:21
now um I guess because it became too
10:23
popular and people are now shunning it
10:24
but I mean that's that's the problem
10:26
with these kind of isn't it like you
10:27
just never know I think growth is good
10:29
as long as it's controlled that we well
10:32
we're seeing some of that aren't we I
10:34
was talking just yesterday to po p
10:36
Antonio rather pther and Heredia and
10:38
basically we were talking about the fact
10:40
that some uh towns are now not issuing
10:43
new tourist licenses so the properties
10:45
that have them have them um but um no
10:48
new ones certainly for a year in altea
10:50
for instance they've they've stopped
10:52
that um for the time being there are
10:54
some rules in alakan city and some rules
10:55
coming up in Valencia City too um and uh
10:58
but Al cont cont to that there are also
11:01
the fact that the Valencia government is
11:03
now talking about introducing some
11:06
social housing or you know cost uh cost
11:08
of housing that people can afford or
11:11
affordable housing that's the word I was
11:12
looking for uh because otherwise we're
11:14
not going to be able to support the uh
11:16
tourists that are coming here um for
11:19
their holidays we won't have the people
11:20
to work they don't have any to working
11:23
yeah no no yeah I mean it's yeah it's
11:26
it's it's always a discussion isn't it
11:28
but it definitely does affect a region
11:31
because the tourist licenses without
11:32
tourist license you cannot rent your
11:34
property out during the summer months
11:35
because that's for it's it's really just
11:37
if you want to rent it out for tourism
11:39
short what is it Airbnb things like that
11:43
and we've seen obviously a huge influx
11:45
of that since the uh since the pandemic
11:47
because well just as people just want to
11:49
get away and do things now because they
11:51
do it way more than they might have done
11:52
in the past but it's now a case of right
11:55
well now I'm free I can get out and do
11:57
and it really is working you know people
11:58
that have those sorts of properties are
12:00
making a bomb uh they really are uh and
12:04
you know it's it's all good as long as a
12:06
balance basically yeah but that that's
12:08
what I mean it is good as long as
12:10
there's a balance and I think it kind of
12:12
tipped over to one side at one point in
12:14
some places but um yeah we've seen there
12:17
have been two or three places in the
12:18
news recently but um I I think local
12:20
governments are getting trying to get on
12:22
top of it and trying to work out some
12:24
kind of happy medium and some kind of
12:26
balance which would be good for us all
12:28
meanwhile uh we've been talking about
12:30
Airbnb and renting there but um on the
12:32
sales front new listings are coming up
12:35
all the time you've been working on some
12:37
videos highlighting this area yeah so
12:40
what we tried to do is we try to create
12:42
dedicated videos for certain areas in
12:45
haia well our goal is to really cover
12:47
almost every area because jav is
12:49
actually quite big a lot of people don't
12:50
realize it because it's a small town
12:52
here on the coast of lanca but when you
12:54
I think if you you're on the which
12:56
is one side and you go to bakar which
12:57
the other side I mean you'll be car for
12:59
30 minutes well in between you've got
13:01
you know you've got the Arnel Beach
13:02
you've got the port you've got the old
13:04
town it's like three towns in one and
13:06
then all the urbanizations on top
13:07
exactly yeah so there's a lot of clients
13:09
that come in and and they ask us what
13:11
what's the best area where should I look
13:13
for and and our answers actually always
13:15
the same it's like there's not such a
13:17
thing as like a bad area it really
13:19
depends on on the individual what they
13:21
want what they want exactly if they want
13:23
to live there all year round we want to
13:24
rent it out etc etc so because of that
13:27
we decided to make different to make
13:29
videos of all the different areas
13:31
highlighting you know what types of
13:32
residents are living there for who would
13:34
it be great like all these kind of
13:36
things um so we've been working on one
13:38
uh this week um about the area of Las
13:41
laderas so we've had a tour of the new
13:44
location of XC College which they're
13:46
going to open there in I think it was
13:47
August they said um and so yeah we had a
13:50
tour with Richard with a head Master we
13:52
had um a conversation with the president
13:55
of the urbanization about residents and
13:57
all the plans and everything so yeah
13:59
that that's great and and we really try
14:02
to to provide everybody that's looking
14:04
to buy in jaia um with with that
14:07
information insight and certainly things
14:09
like schools are quite important
14:10
obviously for a lot of people that are
14:12
moving now because you know we've seen
14:14
that age of people moving to the cost of
14:15
blank a drop from um the sort of the 60
14:18
to 70 and now the average age is 55 yeah
14:21
um and and and and below and and we're
14:23
seeing obviously those people have
14:24
children and scho are quite full no it's
14:28
true there's a lot of amilies that we're
14:29
dealing with in a daily basis as well
14:31
like actually younger people with little
14:33
children that's uh that's fairly common
14:36
right now whereas I think used to be
14:38
used to be pensioners yeah yeah yeah
14:40
people 55 and older and now now it's yet
14:42
the average age is of buyers is getting
14:44
is becoming lower right now so we kind
14:46
of want to of course um yeah serve them
14:49
as well so those videos are are upon the
14:52
vux website not yet we're still going to
14:54
have to um to finish them we are still
14:57
looking actually for a prop property in
14:59
Los laderas which we could cover in that
15:02
area tour um it would be per perfect if
15:04
the house is for sale of course because
15:06
that way um I mean you'll be able to
15:08
promote it as well um while giving
15:10
people the information so if anybody is
15:12
listening right now and and has
15:14
something for sale in that area get in
15:15
touch um with us because yeah we could
15:18
definitely and we would love to uh to be
15:20
able to Showcase that in an area video
15:22
and you can get an idea of those
15:24
showcase videos that you've done in the
15:26
past on on some of the houses they're
15:28
pretty impressive you still got an offer
15:30
as well haven't you at the moment yeah
15:32
for sales yeah yeah yes yes you mean for
15:34
the the 3% yeah yeah so what we we
15:37
charge 3% Commission on uh our exclusive
15:40
listings um so yeah know it's it's that
15:43
that's what we charge and for that I
15:45
think that yeah I think I can say that
15:47
we are yeah and we we quite deliver
15:50
quite like a broad marketing package
15:51
with the video tours we're doing um all
15:54
professionally done drone football
15:56
everything floor plans uh professional
15:59
photography um yeah we basically do do
16:01
everything we could possibly do to to
16:03
market the homes so excellent and all of
16:06
the legal advice that you need either
16:08
within housee or with contacts that you
16:10
have as well yes yes definitely okay
16:12
you've got the some recent listings we
16:14
we we talked about have you got anything
16:16
else that you can tell us about that
16:17
you've taken on recently yes so two days
16:19
ago it was yeah two days time is going
16:21
quick it does fly yeah it does fly yeah
16:24
um we took on a new house it's an LP ver
16:26
it's a very large house really nice um
16:29
it's four bedrooms but like large
16:31
bedrooms I think the master bedroom it
16:33
could be literally could be the living
16:35
room with with a bathroom which I in the
16:37
video kind of jokingly called the spa
16:39
because it's it's so large um but it's
16:42
yeah it's a nice house beautiful views C
16:44
view Oldtown RN all and it's list
16:48
it's going to what just actually gone on
16:50
the website um and it's listed at 1. 495
16:53
million I'm looking at it now it's
16:56
amazing yeah no it's it's a it's a
16:58
really nice one so um yeah again if
17:00
everybody anybody sees it is interested
17:02
reach out and we can provide with
17:04
further details okay yeah anything you'd
17:07
like to find out about the properties
17:09
vux has available
17:10
www.villa.com you can call Ry or Max
17:13
they are on 965 794 059 see I'm
17:17
remembering it and I still got it right
17:19
in front of me in I just leave that up
17:20
to you from now you can stay on top of
17:23
all the latest developments on living
17:25
here and owning a property in Spain on
17:27
Bay radio International twice month also
17:29
find us on our Bay radio and vux YouTube
17:31
channels and our websites and social
17:34
media and if you have any questions
17:36
about anything you've heard today or
17:37
anything else on the subject then please
17:40
contact us via WhatsApp 684-4595
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