If I sell my apartment in Tenerife do I need to pay Capital Gains Tax?

[judetenerife]

can somebody plse advice that if i sell my apartment do i have to pay capital gains tax. I am a fully registered resident who files my declaration de la renta every year and i have had the property just over 10 years. The property is my only residence and property. I have read that i dont have to pay capital gains in these circumstances but my estate agent wasnt so sure as the purchase price on the escritura was below what we actually paid (escritura 116,000) (purchase price 133,000) we only paid 3000 deposit cash and the rest was on mortgage. So do we pay a tax on any sale profit based on the escritura amount or not? thanks x

[delderek]

Escritura value is the one that counts. Any increase on this value is a Capital gain. With some allowances.

[doreen]

You would be exempt from any Capital Gains if you are over 65 (and as you have owned the property more than 3 years). The other exemption you are thinking of requires you to reinvest in another property within a certain period of time.

To get your base cost, you can add to the escritura amount, the taxes you paid (between 5 & 6%?) along with any other purchasing costs that you can provide receipts for (Notary, Gestor, lawyer if used etc) and the cost of any major repairs/improvements to the property (again as long as you have official receipts) ... and you can also deduct the estate agents fee from the selling cost (receipted of course).

Because you are a resident, there is of course no need for the buyer to hold back 3% as would be the case for a non-residnet owner.

[Red Devil]

Does the over 65 exemption for Capital Gains also apply to a non resident?

[doreen]

Does the over 65 exemption for Capital Gains also apply to a non resident?

I'm afraid not :) And for the over 65 Resident, it has to have been their primary residence too.

[judetenerife]

so basically, the amount i sell for, minus the estate agents commision, minus the tax on the commission, minus the plus valia, minus the remaining mortgage, minus the mortgage cancellation fees, what ever is left the government take 27% of??? jeezzz not gonna be much left!

[CIM]

How much did you put into the property in total when you bought it?

[judetenerife]

How much did you put into the property in total when you bought it?

3,000 cash deposit, rest on mortgage. all these deductions are proving hard to work out if we will come out with anything, there seems sooo much to deduct and i havent sold a property before and have no experience. if we come out with nothing then its gonna be very hard to move back to the uk.

[CIM]

Send me an email if you want and I can look at the numbers for you. If there's not going to be any equity in it at the end of the transaction then you may have to look at long letting if you need to move back.
My email is info@TenerifeEstateAgents.net