Following a number of recent requests regarding the sales of properties I sought clarification of the taxes payable by the seller of a property and was told the following;
1. Plus Valia payable to the Town Halls This tax is calculated upon the increase in the value of the land upon which your property stands. It is calculated on the basis of a 3% increase annually from the date of purchase. For example if the value of your land at the time of purchase was €10,000 and that was 10 years ago, the increase in value is assessed to be €3,000 and the tax payable on that is 18% eg €540
2. Incremental Patrimonial This is a tax payable to the central government and is similar to Capital Gains Tax. This tax is calculated on the basis of the total profit of the sale of the property eg if you paid €100,000 for your house and land and sold it for €200,000 you would be taxed on the €100,000 at 19% which would total €19,000.
Hope this helps
There is, unexpectedly, a couple of seats now available on the Cordoba trip on 15th December (details posted on earlier bog). If anyone wishes to go please let me know asap.
1. Plus Valia payable to the Town Halls This tax is calculated upon the increase in the value of the land upon which your property stands. It is calculated on the basis of a 3% increase annually from the date of purchase. For example if the value of your land at the time of purchase was €10,000 and that was 10 years ago, the increase in value is assessed to be €3,000 and the tax payable on that is 18% eg €540
2. Incremental Patrimonial This is a tax payable to the central government and is similar to Capital Gains Tax. This tax is calculated on the basis of the total profit of the sale of the property eg if you paid €100,000 for your house and land and sold it for €200,000 you would be taxed on the €100,000 at 19% which would total €19,000.
Hope this helps
There is, unexpectedly, a couple of seats now available on the Cordoba trip on 15th December (details posted on earlier bog). If anyone wishes to go please let me know asap.
Just one point Jim, I think that you will find that there is no Capital Gains Tax to pay if the sellers are over 60 and have been resident for 3 or more years.
ReplyDeleteThanks for this I was not told this and so I will check with the Secretary and include once confirmed.
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