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V2623-14 6 October 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Tax liability in Spain on capital gain from sale of property in Belgium

A Spanish resident enquires about the taxation of the sale of a property in Brussels. The DGT responds that, as a fiscal resident in Spain, they must pay tax on their worldwide income, although the Spain-Belgium double taxation treaty allows for tax sharing.

The question raised

Taxation in Spain on the capital gain generated from the sale of real estate located in Belgium.

The DGT's ruling

A resident in Spain is taxed on their worldwide income, including gains from real estate abroad. According to the Convention with Belgium, Belgium may tax the gain, but Spain will also tax it as the country of residence. In the event of double taxation, Spain will allow a deduction for the tax paid in Belgium through the international double taxation relief.

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