What taxes should I pay when selling a property at 65 years old or more?

I just came across an article about taxes for sellers over 65 years old in Spain, which I would like to share with you.

It is important to acknowledge that no one is exempt from paying the tax concerning the municipal capital gain, unless the transfer was made at a loss.

Having understood that the tax on capital gain shall always be paid as long as the transfer was not made at a loss, we do find that in IRPF (income tax) we are able to apply certain deductions, moreover, if the property we are selling is our main residence, we will be able to apply an exemption of 100%.

The exemptions in the IRPF (income tax) can be larger or smaller depending on several factors that we will explain below. If the property sold is our main residence, the deduction is of 100%, by which the seller can avoid paying between a 19% and a 23% of the obtained rents: to the first 6.000 € a tax of a 19% will be applied, this percentage goes up to a 21% for a rent between 6.000,01 € and 50.000 €, whereas, from this amount, the applicable tax goes up until the 23%.

In the cases in which the property sold is not the main residence, the owners can avoid paying IRPF (income tax) over the profit obtained is this is reinvested in a life annuity. The maximum amount allowed to be allocated to a life annuity is 240.000 €.

However, if the ownership of the house is shared, the exemption will only be applicable to the part of the property that is owned by the person over 65 years old.

???Stephanie Noll
stephanie@noll-sotogrande.com