New regulations announced in the Spanish budget for 2015 will directly affect owners of Spanish property and businesses.
Among the measures introduced by the Spanish government are a series of beneficial tax breaks for foreign investors and a reduction in capital gains tax from 21% to 20% this year and to 19% in 2016. Owners could also benefit from a substantial reduction in inheritance tax for transactions to immediate family, such as a spouse and children.
Taper relief on capital gains tax from the disposal of a property has been abolished, so property owners selling or gifting a property purchased before 1994 will be required to pay more tax than previously. There are exemptions if you are over 65 and selling your main home or if you are under 65 and selling your main home to buy another main home in Spain.
“The Spanish Government continues to face a difficult balancing act. However, it is being careful not to scare off British owners or potential buyers of property by reducing or maintaining certain taxes and by not introducing new initiatives aimed at this market in particular,” says Peter Esders, commercial director of legal services company Judicare.
