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Talk Radio Europe English-language talk radio station with news, current affairs, sport and music. Costa del Sol on 104.8fm/91.9fm: Costa Blanca on 88.2fm/105.1fm/95.3fm: Costa Calida on 92.7fm: Costa Almeria (15:00-18:00) on 91.4fm/107.3fm and live from our website. Find out more... Spectrum FM Radio station broadcasting music and English news and sports. Received on Costa Calida South 93.8FM, Costa Calida North 106.6FM, Costa Blanca 106.6-104.8FM, Costa Almeria 93.8FM and Alicante to Almería on Torresat TV and Teleast Info channels. Find out more... Talk Radio Europe English-language talk radio station with music, news and sport. On Costa Blanca 88.2/95.3/105.1 FM and on-line. Located at La Colonia, REM FM Centre, San Pedro de Alcantara Marbella, Malaga.
Find out more... | Costa Blanca Local Reference INFOrmation
Information on the taxes due in the event of a gain on the sale of a property in Spain: the rates that will apply, as well as information on circumstance for reliefs or allowances. This information is relevant for both Spanish residents and non-residents.
Spanish capital gains tax is complex. It is paid by residents of Spain on their worldwide assets and by non-residents on property that they own in Spain. The main home of Spanish residents can be exempt depending on the facts. The rate for residents and non-residents is 18 percent. Assets acquired on or before 31 December 1994There are certain deductions available for assets acquired on or before 31 December 1994. Details of how these deductions are calculated for each type of asset are given below. The rules are different for real estate, quoted shares and all other assets. Gains on PropertyWhere a property acquired before 31 December 1994 was disposed of prior to 20 January 2006, the full gain was reduced by 11.1 percent for every year (or part-year) owned prior to 31 December 1994 - so that property acquired before 31 December 1986, was wholly tax free. Where the asset was acquired before 31 December 1994 and is disposed of on or after 20th January 2006, the gain needs to be time-apportioned into:
The reduction is only available on the portion of the gain accruing before 20 January 2006. Gains accruing from 20 January 2006 are taxed in full, as are gains on properties acquired after 31 December 1994, as there is then no distinction made pre- and post-20 January 2006. Main home exemptionIn Spain a person is exempt from capital gains tax on the sale of their main residence if they are:
If they are under 65, and have lived in the house for at least three years then they can relieve the gain via the acquisition of a new main home. They must re-invest the net sale proceeds (after repaying any mortgage) into a new main residence within a period of two years either side of the sale. The tax relief is based on the proportion of the total sale proceeds reinvested into the new home. If the new home costs more than the sale price of the old home, then all of the gain is exempt; but if only 50 per cent of the sale proceeds are reinvested, then only half of the gain is exempt. The main residence does not need to be in Spain to qualify for the relief, nor does the new home. In addition to the cost of acquisition, expenditure on improving or enhancing the property is allowable as a deduction when calculating the net gain and there is an "indexation co-efficient" that increases the allowable costs for inflation, based on how long the property has been owned. In order for the reinvestment relief to apply, the taxpayer must declare the gain on their Spanish tax return together with their intention to reinvest the proceeds into a new main home. If the required declarations are not made, the relief is likely to be denied by the Spanish tax authorities. In addition, if they have not declared themselves to the Spanish authorities as being resident, and not completed Spanish tax returns, the main home exemption will not be available. Sale of property by non-residentsWhen property is sold by a non-resident of Spain, purchasers must withhold three percent of the purchase price (not the gain) and pay it over to the Spanish tax authorities as an advance payment of capital gains tax on behalf of the vendor. If this is not paid, the purchaser can be fined and the unpaid tax becomes a charge over the property itself. If this three percent exceeds the tax due on the gain, a repayment will be made of the excess; however, if the tax due is more than the retained amount, further tax will be due in Spain. The vendor must file a Spanish tax return on the transaction within three months of the sale before any repayment can be made. If a person is not resident in Spain, tax may also be due in the country where they are resident, subject to any Double Taxation Treaty Relief. Gains on quoted sharesWhere quoted shares acquired before 31 December 1994 were disposed of prior to 20 January 2006, the gain was reduced by 25 per cent for every year (or part-year) owned prior to 31 December 1994, resulting in acquisitions prior to 1992 being tax-free. Where the shares were acquired before 31 December 1994 and disposed of on or after 20 January 2006, again the gain needs to be time-apportioned into:
The reduction is only available on the portion of the gain accruing before 20
January 2006. Gains accruing from 20 January 2006 are taxed in full, as are
gains on quoted shares acquired after 31 December 1994, as there is then no
distinction made pre- and post-20 January 2006. Other Capital GainsIn a similar manner to the treatment of gains on property and quoted shares, the part of the gain on other assets accruing prior to 20 January 2006 is reduced by 14.28 per cent per year for every year or part year of ownership prior to 31 December 1994, with the effect that assets acquired before 1989 are exempt on that part of the gain. If the asset was sold after 20 January 2006, then the part of the gain accruing from that date is taxable in full, as is the whole gain on any such asset acquired after 31 December 1994, since no distinction is then made with reference to 20 January 2006. Main exemptions
PlusvaliaIn addition to any mainstream capital gains tax on the sale of property there is also a local tax in urban areas levied by Spanish town halls commonly known as the Plusvalia (which literally translates as "gain") on the growth in the value of urban land (excluding the buildings). The real growth in value of the land is reflected by the allowance of a realistic allowance for inflation, unlike the token allowance in Spanish mainstream capital gains tax. The tax rate varies depending upon the size of the local population and the length of ownership. For a town of more than 100,000 inhabitants the minimum tax rate is 20 per cent and the maximum 30 percent, with the town hall fixing a rate within this. Any Plusvalia tax paid is allowed as a cost of disposal in calculating the mainstream capital gains tax. Related Information
Information by Blevins Franks Tax Advisory Service 0509ww
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