There is a transitional regime for assets acquired before 31 /12 /1994

This regime applies to transfers made from 1/1/2015 and up to a total amount of 400.000 euros, so it is necessary to account for all transmissions made since that date.

If you have reached that limit with previous transmissions made after that date (1/1/2015), no transitional regime will apply.

If the limit has not been reached, or the only transmission made is the current one and the taxable capital gain is over 400.000 €, the transitional regime will be applied only up to the limit of the 400.000 €

The transitional regime divides the capital gain into two stages, the first of them with some benefits.

From the total of days than the asset was in your ownership, you have to split the number of days from the date of acquisition to 19/1 /2006

The capital gain generated in that period will be reduced by a total percentage calculated over the number of years that the asset was in your ownership, from the date of acquisition to the 31/12/1994, less two, at an annual percentage of 11.11 % (relating to immovable assets )

An example calculation may be as follows:

Date of acquisition 1/1/1980

Amount of acquisition 50,000

Date of transmision 15/11/2018

Amount of transmission 350,000

Capital Gain 300,000

Number of days of
ownership until 19/1/2006 9,515

Number of days of
ownership until 15/11/2018 14,198

Calculation:

300,000 x 9,515/14,198= 201,409 € Capital gain generated before 20/1/2006

98,591 Rest of the capital gain

Number of years from the date
of acquisition to 31/12/1996
less two (16-2) 14 years

Annual percentage of reduction
11.11 % ( 11.11 x14 is + than 100%
so there is a total reduction reached
therefore no capital gain to be taxed for this first stage

Rest of capital gain 98,591

to be taxed at the rate:

If the seller is a resident:

From 0 to 6.000 19% = 1.140
From 6.000 to 50.000 (44.000) 21% = 9.240
48.591( 98.591-50.000) 23 %= 11.175,93

21.555,93 To be paid

If the seller is not a resident:

19%= 18,732.29 to be paid

If you make a second transmission, remember that you will only benefit from the reduction in the same proportion as the value of the new transmission added to the value of the previous transmission ( made after 1/1/2015 )reaches 400,000 €