Key aspects to take into account for correct tax optimisation in real estate

Key aspects to take into account for correct tax optimisation in real estate

By Xavier Jové, Patrimonia lawyers and economists.



When it comes to tax, the same property transfer operation can have a very different result depending on whether or not we have conducted a comprehensive tax optimisation study prior to the operation.


The difference can be quite significant depending on a correct analysis of the operation. The first thing we have to bear in mind is to be very clear about whether what we are transferring has been our main residence or not for tax purposes.


If it has been and, in addition, if the person transferring it is over 65 years of age, a very beneficial scenario could be applied for the taxpayer in terms of tax optimisation. If the seller is not over 65, there could similarly be a beneficial tax scenario, but this would not be as great as the previous scenario. If the seller is not over 65 and the main residence is not being transferred, we would have to conduct a case study for each operation. For example, if we are transferring our main residence but we are not over 65 years old, no tax will be applied on this transaction provided the amount obtained is reinvested in the purchase of a new main residence.


We therefore believe that an essential step in the process of buying and selling a property is obtaining the right advice from qualified professionals in order to assess the tax implications of the operation for tax optimisation and savings.