Has anyone else seen the changes to plus valia to come into force from January 2015.
Will make a hefty difference when selling your property!
Changes to plus valia
Re: Changes to plus valia
Why do you dangle a metaphorical carrot and then not expand on it, or at least give a reference.
Re: Changes to plus valia
Here is a link[url http://www.finanzas.com/noticias/vivien ... 38.htmlurl]
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Re: Changes to plus valia
Your link doesn't work. Please try posting it again.
Sid
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Re: Changes to plus valia
FYI......when posting links please use the URL tab in the posting box
http://www.finanzas.com/noticias/vivien ... 70838.html
http://www.finanzas.com/noticias/vivien ... 70838.html
All my best learning experiences start with a problem I need to solve.
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Re: Changes to plus valia
This change has nothing to do with Plus Valia tax. It applies to CGT (Capital Gains Tax) which is entirely different.
Basically, if you are selling a house about 30 years old there is presently no tax to pay because in the early years you were allowed 11.11% deduction for every year you had owned it. That was changed some time ago to only apply to houses purchased before 1994 which meant if you bought it in 1984 there was no tax to pay.
If you purchased after 1994 the allowances were reduced to inflation only and after 2006 that was also removed.
This change means the retrospective abolition of the old 11.11% deduction.
It could be a very expensive change if you are selling an older house, but remember that you still get 100% allowance if you reinvest the money in a new permanent residence or are over 65 and have owned the house as your primary residence for 3 years. Of course, these allowances only apply to tax residents.
Sid
Sid
Basically, if you are selling a house about 30 years old there is presently no tax to pay because in the early years you were allowed 11.11% deduction for every year you had owned it. That was changed some time ago to only apply to houses purchased before 1994 which meant if you bought it in 1984 there was no tax to pay.
If you purchased after 1994 the allowances were reduced to inflation only and after 2006 that was also removed.
This change means the retrospective abolition of the old 11.11% deduction.
It could be a very expensive change if you are selling an older house, but remember that you still get 100% allowance if you reinvest the money in a new permanent residence or are over 65 and have owned the house as your primary residence for 3 years. Of course, these allowances only apply to tax residents.
Sid
Sid
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Re: Changes to plus valia
This probably explains it better than the link to finanzas.com:
http://www.garrigues.com/es/publicacion ... iento.aspx
but they also insist on using the term 'plus-valía' which as Sid says, in this instance, means capital gain as opposed to Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana
http://www.garrigues.com/es/publicacion ... iento.aspx
but they also insist on using the term 'plus-valía' which as Sid says, in this instance, means capital gain as opposed to Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana
Let's go Brandon!
Re: Changes to plus valia
When we spoke to our Gestor about a month ago, she said that this ruling had not yet come in and was subject to ratification, and that we were not to be concerned about it, as it may never happen Now it seems from these articles that it is WRIT IN STONE and definitive - anybody know if it is indeed definitive now? thanks
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Re: Changes to plus valia
It has just been announced today that these changes will not now apply to properties sold for under €400,000.
http://economia.elpais.com/economia/201 ... 63809.html
http://economia.elpais.com/economia/201 ... 63809.html
Re: Changes to plus valia
But only in respect of properties bought before 1994, unles they make further amendments.
Re: Changes to plus valia
Perhaps our Gestor did have wind of this amendment coming up then , as ours was well under the 400,000 and before 1994 ...
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