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- If I sell my rustic property, will I have capital gains?
Property Law
Antonio Flores Vila
2nd of July 2000
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Q. We are in the procces of selling our house which is classed as a "rustic property". Is it correct that we are not liable for capital gains? We are non-residents but will be re-buying again. We assume that the 5% retainer paid by the purchaser out of the purchasing sum will still have to be paid,is this so?
Mr. McKerlie-Hollis
Spain, Casares
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A. Dear Mr. McKerlie-Hollist,
Unfortunately capital gains tax in not affected by the nature of the property. The age of it and the condition of the seller will do. Capital Gains tax is a personal tax and most certainly what you are inquiring about is the ´plusvalía´ tax, which is levied on the sale of urban property, regardless of the sales price. Rustic property is not subject to this tax and therefore you are exempt from it. However, you will have to bear the 5% sales price retention by the buyer of which you
will be able to obtain a refund or either complement with a supplementary payment of tax, as the case may be.
I hope this helps
Regards
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