Since January this year, the rate applied for capital gains tax is the same for both residents and non-residents, following a court decision to ensure equality.
As of this year, the national budget applies the same rate to both residents and non-residents, setting the bar at a 50% limit when calculating capital gains (in previous years capital gains for non-residents were calculated at 100%).
On income tax, progressive rates are applied based on the taxable amount of real estate capital gains (50% limit) and the taxpayer’s other sources of income, including all sources earned abroad (more information is available in this technical opinion issued by the Institute of Chartered Accountants). This scenario differs from last year when a flat rate taxation of 28% was applied for non-residents.
The recent changes to the rules for declaring (and calculating) capital gains are a little more complex for both taxpayers and for the authorities and experts that analyse declarations. This is because each country applies a different framework and the evidence to prove foreign income also greatly varies.
In the meantime, the new rules have come into force and changes are already underway. Taxation calculations for 2022 continue to be subject to the flat rate of 28% mentioned earlier, although they may eventually benefit from the 50% limit when calculating capital gains.
If you would like any support on this issue or anything related to property taxation, please do not hesitate to contact our specialized legal team.
