Tax on Property Disposal

Spanish translation: impuesto sobre transmisiones patrimoniales

09:58 Oct 13, 2008
English to Spanish translations [PRO]
Law: Taxation & Customs
English term or phrase: Tax on Property Disposal
En realidad no tiene contexto, viene en el asunto de un correo con relación a un tipo de impuestos que tiene que pagar la empresa para la que trabajo. Espero podáis decirme de qué se trata sin el contexto...

Muchas gracias por adelantado!
jsanchez
Spanish translation:impuesto sobre transmisiones patrimoniales
Explanation:
This is what tax on the disposal of property is called in Spain, so maybe this would be the expression most likely to be understood if it is to be used locally.

(This is not the same as "impuesto a la plusvalía", which is a tax on the capital gains realized on the sale of a property, rather than on the sale itself.)





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Note added at 1 hr (2008-10-13 11:03:24 GMT)
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For info, here is a description of the "impuesto sobre transmisiones patrimoniales (y actos jurídicos documentados)", translated as "transfer tax" in this document in English called "A Guide to Business in Spain 2002" by Garrigues Abogados y Asesores Tributarios, published by the Spanish Institute For Foreign Trade (ICEX) and the Directorate General of Trade and Investments (DGCI) (available on the ICEX website):

Transfer tax is levied on a limited number of transactions, including most notably:
• For corporate transactions such as incorporation, capital increase and/or reduction at companies the tax rate is 1%
• For transfers of real estate the tax rate is 6%
• For transfers of movable assets and administrative concessions 4%
• For certain rights on real estate 1%
• For certain notarial documents 0.5%
The Autonomous Communities are entitled apply different rates in certain cases.
If the seller is a company or an individual real estate developer, the transfer of buildable land or the first occupancy of buildings is taxed under VAT. In second and subsequent conveyances of real estate by companies, traders or professionals in the course of their activities, there is an option to pay either transfer tax or VAT. This option is applicable if the transferee is a trader or professional who can deduct all his VAT paid and the vendor elects to pay VAT rather than transfer tax.
Transfers of shares of Spanish companies are generally exempt from any indirect taxation, except when more than 50% of the capital stock of a company is transferred and at least 50% of the assets of such company consist of real estate located in Spain. In this case the transaction will be considered for indirect taxation purposes to be a transfer of real estate subject to transfer tax at 6%. Transfer tax is a cost to the transferee or beneficiary.
Selected response from:

Rebecca Jowers
Spain
Local time: 06:39
Grading comment
GRacias!
4 KudoZ points were awarded for this answer



Summary of answers provided
5 +2impuesto sobre transmisiones patrimoniales
Rebecca Jowers
4 +1impuesto sobre la enajenación/transferencia de inmuebles (impuesto a la plusvalía)
MikeGarcia


Discussion entries: 1





  

Answers


53 mins   confidence: Answerer confidence 5/5 peer agreement (net): +2
tax on property disposal
impuesto sobre transmisiones patrimoniales


Explanation:
This is what tax on the disposal of property is called in Spain, so maybe this would be the expression most likely to be understood if it is to be used locally.

(This is not the same as "impuesto a la plusvalía", which is a tax on the capital gains realized on the sale of a property, rather than on the sale itself.)





--------------------------------------------------
Note added at 1 hr (2008-10-13 11:03:24 GMT)
--------------------------------------------------

For info, here is a description of the "impuesto sobre transmisiones patrimoniales (y actos jurídicos documentados)", translated as "transfer tax" in this document in English called "A Guide to Business in Spain 2002" by Garrigues Abogados y Asesores Tributarios, published by the Spanish Institute For Foreign Trade (ICEX) and the Directorate General of Trade and Investments (DGCI) (available on the ICEX website):

Transfer tax is levied on a limited number of transactions, including most notably:
• For corporate transactions such as incorporation, capital increase and/or reduction at companies the tax rate is 1%
• For transfers of real estate the tax rate is 6%
• For transfers of movable assets and administrative concessions 4%
• For certain rights on real estate 1%
• For certain notarial documents 0.5%
The Autonomous Communities are entitled apply different rates in certain cases.
If the seller is a company or an individual real estate developer, the transfer of buildable land or the first occupancy of buildings is taxed under VAT. In second and subsequent conveyances of real estate by companies, traders or professionals in the course of their activities, there is an option to pay either transfer tax or VAT. This option is applicable if the transferee is a trader or professional who can deduct all his VAT paid and the vendor elects to pay VAT rather than transfer tax.
Transfers of shares of Spanish companies are generally exempt from any indirect taxation, except when more than 50% of the capital stock of a company is transferred and at least 50% of the assets of such company consist of real estate located in Spain. In this case the transaction will be considered for indirect taxation purposes to be a transfer of real estate subject to transfer tax at 6%. Transfer tax is a cost to the transferee or beneficiary.


Rebecca Jowers
Spain
Local time: 06:39
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 19
Grading comment
GRacias!

Peer comments on this answer (and responses from the answerer)
agree  MikeGarcia: You are right, my association with the plusvalía tax is incorrect. In Andalucía, the AJD tax for individuals buying properties is 7 %, notably expensive when a mortgage is granted.
15 mins
  -> Muchas gracias, Miguel

agree  Maru Villanueva
5 hrs
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17 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
tax on property disposal
impuesto sobre la enajenación/transferencia de inmuebles (impuesto a la plusvalía)


Explanation:
Supongo que se refiere al impuesto que cobra Hacienda cuando se vende un inmueble, sobre la diferencia entre el precio de adquisición y el de reventa...
Ver el AVH Legal, pág. 195, "disposal", "dispose of property 2".

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Note added at 1 hr (2008-10-13 11:04:15 GMT)
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Rebecca is right, even though my definition is correct, the comment on plusvalía is not, it's not the same thing.

MikeGarcia
Spain
Local time: 06:39
Specializes in field
Native speaker of: Native in SpanishSpanish
PRO pts in category: 20

Peer comments on this answer (and responses from the answerer)
agree  Conchi Otaola
27 mins
  -> Gracias, Conchi.-
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