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myra cecilia said:
Saturday, July 25, 2009 @ 12:36 PM

Hello. When you say no tax on your first dwelling can you please clarify. As a tax is paid anually on the imaginary increase of your first property. Plus valia when you sell and most probably inheritance tax when you die. So what tax is not paid.

Antonio Robles said:
Tuesday, July 28, 2009 @ 5:48 PM

Hi Myra,

We are talking about the Income tax, el impuesto de la renta (and related to residents) When I say that you first dwelling is not tax I am only talking about the Income tax of residents in Spain and I referr to the habitual dweilling, your usual home. This is foreseen in the Law 35/2006 as "imputación de renta inmobiliaria" and if you take a look at its article 85 this fictious revenue it is only generated over second properties-buildings, but for example if you own a plot with no building on it, then this fictious revenue doesn´t exist.

The other things you comment are related to other taxes. The plusvalia is payable always, it doesn´t matter if it is a plot, a builiding, your usual dwelling or whatever. What happens, is that in the plusvalía tax related to a transmission as cause of death of the owner, and depending the city (for example Murcia) you can have deduction of 95% on the plusvalía tax.

And regarding the inheritance tax residents in Spain, and residents in Murcia for at least 5 years, the closest relatives, have a reduction on the Inheritance tax of 99%. Other Communities have similiar reductions but conditions might change.

So we are talking about different taxes and it is mistake to mix them up. One thing can mean a thing in a tax and a complete different thing in other tax.