Selling an apartment, incurring some expenses and must be responsible tax authorities! Helpmycash also explains that one of them is personal income tax and in what circumstances you will be exempt from paying this tax to the Tax Office.
Exemption for reinvestment in primary residence
If you sold your habitual residence and used the money to buy a new habitual residence, you may be free to pay personal income tax. To do this, you must meet a number of requirements: the house you are selling, usual. You must have been a permanent resident for at least three years. If you do not meet this requirement, but the change of residence took place for justifiable reasons, you may also benefit from tax benefits. The new house should also be as usual. To do this, you must really sit down within twelve months of the purchase or completion of the business.
The time you need to reinvest is two years. These can be both pre-sales and post-sales.
For the reinvestment to be total, you must devote all the money from the sale (taking into account expenses) to the purchase of the new home. If there is a surplus, you can only partially benefit from the exemption.
Exemption for over 65s
this People over 65 do not have to pay personal income tax on the sale of their habitual residence.regardless of whether they reinvest their money in another residence. If the home they are selling is a second home, they will have to pay taxes instead, unless they use the money from the sale to generate a lifetime income according to the following conditions:
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Term. The lifetime annuity must be concluded within a period of six months from the date of sale.
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Quantity. The maximum amount that entitles reinvestment to benefit from the exemption is 240,000 Euros.
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Frequency. The lease must have a frequency of less than or equal to one year. It should also begin to be taken within one year of its constitution.
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Communication. You must notify the insurance company or bank that the money is the product of a home sale and that you intend to qualify for the exemption.
Exemption on delivery of flat in payment
If you had to hand over your house on the due date because you could not pay the mortgage, enjoy the exemptionalthough it is necessary that you do not own any other property in sufficient quantity to cover the entire debt.
In this case, the difference between the acquisition value of the transferred flat and the transfer value will be used to calculate whether you have a capital gain or loss. The second is nothing debt value extinguished by this dating.
Source: Informacion
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