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V1248-18 11 May 2018 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

Capital gains from German property sales may be taxed in Germany and Spain

A Spanish tax resident enquires where capital gains from German property sales should be taxed. The DGT states that Germany has taxing rights and Spain must apply elimination of double taxation.

The question raised

Question posed: A query is made regarding where the capital gain derived from the sale of real estate located in Germany should be taxed.

The DGT's ruling

As a resident in Spain, the taxpayer is taxed on their worldwide income. However, the Spain-Germany Double Taxation Convention allows gains from the alienation of real estate located in Germany to be taxed in that State. In this case, Spain must apply the double taxation relief in accordance with the convention.

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What is published here, applied to a company or a specific case. The first meeting is free.

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