Complete Guide to IRPF When Selling a Property in Girona

The Personal Income Tax (IRPF) is a crucial aspect to consider when selling a property in Girona or anywhere else in Spain. The sale of a property is subject to capital gains taxation, which involves calculating and paying taxes. In this article, we will provide a complete guide on IRPF when selling a property in Girona, highlighting the key aspects that property owners and sellers should be aware of.

IRPF Declaration in the Sale of a Property

When an owner decides to sell their property in Girona, they are required to file an IRPF declaration on the capital gain obtained in the transaction. The capital gain is calculated as the difference between the selling price and the acquisition price of the property, after applying certain adjustments and deductions allowed by the law.

Types of Taxation

In case the transaction has generated losses, it will not be necessary to withhold any percentage. However, IRPF is applied through a scale of tax rates that vary depending on the amount of gain obtained and the duration of ownership. These tax rates are:

• Up to 6,000 euros of gain: 19%
• Between 6,000 and 50,000 euros of gain: 21%
• Between 50,000 and 200,000 euros of gain: 23%
• Between 200,000 and 300,000 euros of gain: 27%
• More than 300,000 euros of gain: 28%

Deductions and Exemptions

Some deductions and exemptions can be applied to the capital gain from the sale of a property in Girona. Some of the most relevant ones include:

• Reinvestment exemption: If the seller reinvests the sale proceeds in the purchase of a new home within two years, it is possible to request an IRPF exemption.
• Deductions for improvements: Improvements made to the property, properly justified, can reduce the capital gain subject to taxes.
• Age deduction: Sellers over the age of 65 can benefit from an exemption on the capital gain.

Withholding at Source

In many real estate transactions in Spain, the buyer is required to withhold a percentage of the total purchase price and transfer it to the Tax Agency as an advance payment of the seller's IRPF. This withholding at source generally ranges around 3% of the sale price.

Professional Guidance from Engel & Völkers Girona

Given the complexity of tax regulations and financial implications, it is highly recommended to seek the advice of a tax and real estate transaction professional when selling a property in Girona. An experienced advisor can help optimize the transaction structure and maximize available deductions and exemptions.

At Engel & Völkers Girona, we are committed to providing accurate and valuable information to our clients to help them understand the intricacies of real estate taxation. This guide on Income Declaration is part of our commitment to offering professional and comprehensive service.