{"id":11849,"date":"2022-04-28T19:38:10","date_gmt":"2022-04-28T17:38:10","guid":{"rendered":"https:\/\/www.white-baos.com\/?p=11849"},"modified":"2022-04-28T19:38:15","modified_gmt":"2022-04-28T17:38:15","slug":"capital-gain-tax-in-spain-main-home","status":"publish","type":"post","link":"https:\/\/www.white-baos.com\/en\/capital-gain-tax-in-spain-main-home\/","title":{"rendered":"Expert legal advice. Capital Gains Tax in Spain. Main home exemptions.\u00a0 Reinvestment in main residence or sale being over 65 years old"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When we talk about Capital Gain Tax in Spain (CGT) and applicable exemptions, how much do we know about them? In this article we will focus on the tax exemptions available under the Personal Income Tax Law in the event that we sell our main residence and purchase another one. We will also tell you about the exemption related to being over 65 years old.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><u>Exemption for reinvestment in your main residence<\/u><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Sometimes, the gain obtained from the sale of our property can be exempt. When can we say that it is exempt? When we have sold our main residence and the total amount obtained from the sale is reinvested:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>in the purchase of another main residence or<\/li><li>in the refurbishment of what will become our main residence.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><u>Is this exemption automatically applied by the Tax Agency?<\/u><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No, as you must express your wish to take advantage of this exemption. It is important that the Tax Agency understands that both the property sold and the one acquired (or refurbished) are considered to be your main residence.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><u>Concept of main residence<\/u><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For tax purposes, a main residence is understood to be one in which you have lived for a continuous period of at least three years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And for the property acquired to be considered the habitual residence, it must be permanently inhabited within 12 months from its acquisition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><u>How do I have to reinvest the profit obtained<\/u><\/strong>?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This reinvestment can be done in two ways. The first way: make the reinvestment all at once. The second way: reinvest the amount in instalments, but always over a period of no more than two years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><u>What happens if I do not reinvest the entire amount obtained from the sale?<\/u><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In this case, only the proportional part of the capital gain (CGT) obtained that corresponds to the amount reinvested can be excluded from taxation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><u>Exemption from capital gains tax sellers being over 65 years old<\/u><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you have sold your main residence and you are over 65 years old, the gain obtained will be exempt, regardless of whether or not it is reinvested in the purchase or renovation of another home. This exemption also applies in the case of a person in a situation of severe or great dependency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In order to be able to apply this exemption, the property being transferred must be the habitual residence at the time of the sale, or have been so in the previous two years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><u>Conclusions<\/u><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If after having sold your property you need a detailed analysis to find out more about capital gain and applicable exemptions. If you need legal advice of buying or selling a property in Spain, <a href=\"https:\/\/www.white-baos.com\/en\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">contact us.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The information provided in this article is not intended as legal advice, but merely conveys information related to legal issues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Carlos Baos (Lawyer)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">White &amp; Baos.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tel: +34 966 426 185<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">E-mail: info@white-baos.com<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">White &amp; Baos 2022 &#8211; All Rights Reserved.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>You may be interested in the following services and articles:<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><a href=\"https:\/\/www.white-baos.com\/en\/purchase-and-sale-of-the-main-home-in-spain-tax-benefit-in-the-capital-gain-tax\/\">Purchase and sale of the main home in Spain. Tax benefit in the Capital Gain Tax.<\/a><\/h5>\n\n\n\n<h5 class=\"wp-block-heading\"><a href=\"https:\/\/www.white-baos.com\/en\/the-division-of-common-property-concept-capital-gain\/\">The division of common property. Concept. Do you have to pay Capital Gain Tax?<\/a><\/h5>\n\n\n\n<h5 class=\"wp-block-heading\"><a href=\"https:\/\/www.white-baos.com\/en\/new-possibility-of-not-paying-capital-gains-tax-in-spain-for-those-who-are-no-longer-tax-residents\/\">New: Possibility of not paying Capital Gains Tax in Spain, for those who are no longer tax residents<\/a><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capital Gain Tax in Spain. Main home. Tax exemptions.  Reinvestment in main residence. Sellers over 65 years old.  [&#8230;]<\/p>\n<p><a class=\"btn btn-primary understrap-read-more-link\" href=\"https:\/\/www.white-baos.com\/en\/capital-gain-tax-in-spain-main-home\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":2,"featured_media":11845,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[428],"tags":[1338],"class_list":["post-11849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-selling-property-commercial-and-residential-in-spain-and-the-uk","tag-capital-gain-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Capital Gain Tax in Spain . Main home.<\/title>\n<meta name=\"description\" content=\"Capital Gain Tax in Spain. Main home. Tax exemptions. Reinvestment in main residence. 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