News from the IRPF 2022: How does it affect your apartment sale?

30 de March de 2022
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The Personal Income Tax (IRPF) is one of the taxes that directly affect the sale of a flat.

A tax that has been recently modified by the Ministry of Finance, who recently announced the changes for 2022.

The main change that the IRPF has undergone lies specifically in the sections, with the upper sections being the most affected.

How does personal income tax affect an apartment sale? What is its impact? Let’s find out!

The new IRPF section of 2022

We could group the changes implemented by the Ministry of Finance with respect to personal income tax into three:

  1. The sections are extended from five to six.
  2. A new section is introduced for income greater than €300,000.
  3. The sections are established as follows:
  • Up to 12.450 euros: 19%
  • From 12.450 to 20.200 euros: 24%
  • From 20.200 to 35.200 euros: 30%
  • From 35.200 to 60.000 euros: 37%
  • From 60.000 up to 300.000 euros: 45%
  • From 300.000 onwards: 47%

This is how personal income tax affects the sale of your apartment

If we focus on home sales, three key questions arise: How is it calculated? When is this payment exempt? What deductions exist?

We analyze them one by one!

1/ How is personal income tax calculated?

If you sold your home in 2021, in the Income Statement for 2022, you must declare the operation.

To know the personal income tax that you will have to pay, you have to know what the increase in assets obtained with the sale has been.

To find out, you must calculate the difference between the purchase price (acquisition value) and the sale price (transmission value).

-> The transmission value is the net gain. So it will be calculated as follows:

Transmission Value = Sale Price – Operation Expenses – Taxes

-> The acquisition value refers to the investment made in its entirety.

Acquisition value = Purchase price + Reforms and investments + Expenses and taxes – Amortizations

Depending on the profit obtained with the operation, the percentage of taxation is defined:

  • Up to 6.000 in profits: 19%
  • Between 6.000 and 50.000 euros: 21%
  • Between50.000 and 200.000 euros: 23%
  • More than 200.000 euros: 26%

2/ When am I exempt to pay personal income tax?

The owner can get rid of paying personal income tax for the sale of his home:

  • When there is no capital gain.
  • When the money earned is reinvested in the purchase of what will be a permanent residence. Prove is needed to verify that the property being sold has been the permanent residence for three years and that the new one is also the same after 12 months.
  • When the owner is over 65 years old and it is his first home.
  • When there is a dation in payment and the mortgage cannot be repaid.

3/ What deductions exist?

The New Housing Law contemplates reductions of up to 60% for those owners who have carried out reforms in their habitual residence during the year prior to the payment of this tax.

20% deduction: for those owners whose reforms have allowed them to reduce their consumption of heating and air conditioning by 7% or more.

40% deduction: when taxpayers, after renovating their home, have been able to reduce their consumption of non-renewable primary energy by 30% or more. The Energy Efficiency Certificate must be presented to prove it.

60% deduction: for owners who have managed to improve the energy efficiency of the entire building.

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Are you thinking of selling your flat and have doubts about how to carry out all the legal procedures? Do not hesitate to contact our agents so that they can advise you from the first moment.

At KM2, real estate in Barcelona and Madrid, we will accompany you at every step and we will ensure that the operation is carried out in a profitable, safe and correct manner.

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