How much is Capital Gains Tax Paid on the Sale of an Apartment?

The capital gains tax on the sale of an apartment is a tax that is applied to the increase in the value of a property from the moment it was acquired until its sale. This tax, known as municipal capital gains tax, may vary depending on the municipality and depends on factors such as the length of time the property has been owned and the cadastral value of the land.

Now, how much is capital gains tax paid on the sale of an apartment? This amount is calculated by applying a coefficient to the increase in the value of the land, according to the fiscal ordinances of each city council. However, since 2021, this tax has undergone modifications to adapt to the rulings of the Constitutional Court, offering two calculation formulas so that the seller can choose the most favorable one.

Who Pays the Capital Gains Tax on the Sale of an Apartment?

One of the most frequently asked questions is who pays the capital gains tax on the sale of an apartment. In general, this tax must be assumed by the seller of the apartment, since it is considered that they are the ones who obtain the economic benefit from the transaction.

However, there are exceptions in which the buyer can assume this cost, especially if this is agreed in the purchase contract. Likewise, in cases of inheritances and donations, the person who receives the property is the one who must take charge of the capital gains tax on the sale of an apartment, since it is considered a patrimonial transfer.

If I Sell an Apartment to Buy another, Do I Pay Capital Gains Tax?

Another important question is: if I sell an apartment to buy another, do I pay capital gains tax? The answer depends on different factors. Even if you sell an apartment to acquire another, the municipal capital gains tax is still mandatory in most cases.

However, there are situations in which this payment can be avoided. For example, if it is demonstrated that the income obtained from the sale is reinvested in the acquisition of a new habitual residence, it is possible to obtain tax benefits or even an exemption from the tax. Therefore, it is essential to seek advice before carrying out the operation.

How Can Espígul Help You with the Capital Gains Tax on the Sale of an Apartment?

At Espígul, we know that selling a property involves a series of tax procedures that may generate doubts, especially in relation to the capital gains tax on the sale of an apartment. For this reason, we offer comprehensive advice to help you calculate how much capital gains tax is paid on the sale of an apartment and optimize the process so that it is as beneficial as possible.

In addition, our team will guide you in choosing the best tax option, reviewing the possibilities of exemption and ensuring that the transaction is carried out efficiently. Contact us!