- QUESTION: Two-years-ago we sold our flat in Torrevieja, which was our main residence and bought a flat in Italy. After a year we sold that flat and bought a small apartment in Torrevieja. We are both over 80 and we now need to sell this flat and move to Cadiz to be near family. We have lived in this flat for less than a year. Will we have to pay capital gains tax or “plus valia”?
G.C. (Costa Blanca)
- ANSWER: There are three requirements to be exempt from Spanish capital gains tax. First, you must be an official tax resident in Spain, declaring for Spanish income tax. Second, you must be selling a home which has been your main residence for three years. Third, you must be older than 65. You miss out the three-year requirement. However, if you use all the proceeds from your sale to purchase a new main residence in Spain, you can also be exempt from capital gains tax. The “plus valia” tax is a different tax, which is paid to the Town Hall and is based on how long you have owned the property.