To put an end to the differences between residents and non-residents in the taxes applied to real estate capital gains, the following administrative instruction was published:
From January 1, 2023, income relating to capital gains obtained from the sale of real estate, by both residents and non-residents, taxes will now only apply to 50% of the gains.
The tax rates applicable to the 50% are progressive and vary between 14% and 48%. To calculate the tax rate, aggregation with all income obtained in the same tax year is compulsory. This means that even non-residents must declare all the income received, even if this income is not taxed as it is only used to calculate the tax rate.
For further information on this and other tax issues, please contact our Tax Department – tax@valadascoriel.com
