Determination of the taxable base for the purposes of income tax for non-residents without a permanent establishment

Capital gains on assets acquired before 31 December 1994

Capital gains obtained by natural persons resident in States that have not signed an Agreement with Spain, arising from property or rights acquired before December 31, 1994 are taxed as follows:

Incomes accrued from 1 January 2015:

The amount of the capital gains corresponding to equity elements transferred before 31 December 1994 will be determined according to the following rules:

• One: Having calculated the gain for the difference between the transfer and purchase values, the part thereof generated before 20 January 2006 will be distinguished. This part will be reduced, if applicable, as follows:

  1. The number of years between the purchase date of the element and 31 December 1996 will be calculated and rounded up.

  2. The transfer value will be calculated of all the equity elements whose capital gain would have resulted from applying this same transitional regime, transferred from 1 January 2015 until the transfer date of the equity element. When this result is greater than 400,000 euros, no reduction will be made.

  3. When the sum of the transfer value of the equity element and the amount referred to in letter b) above is lower than 400,000 euros, the part of the capital gain generated before 20 January 2006 will be reduced in the amount resulting from applying the following percentages for each year of permanence exceeding two of those stipulated in letter a) above.

     Percentages:

     • 11.11%: Real estate properties, rights thereon or securities of organisations included in Section 108 of the Securities Market Act nº 24/1988 of 28 July, with the exception of stocks or shares representing the corporate capital or equity of Real Estate Investment Companies or Funds.

     • 25%: stocks traded, with exception of the stocks representing the corporate capital of Security and Real Estate Investment Firms.

     • 14.28% for the remaining capital gains.

  4. When the sum of the transfer value of the equity element and the amount referred to in letter b) above is more than 400,000 euros, but the result of the provisions of letter b) above is less than 400,000 euros, the reduction will be applied to the part of the capital gain generated before 20 January 2006 which proportionally corresponds to the part of the transfer value which, added to the transfer value of the amount of letter b) above, does not exceed 400,000 euros.

• Two: In cases of securities admitted for trading, the appropriate following reduction will be made on the capital gain:

  1. If the transfer value is equal to or more than that corresponding to the securities, to the effects of Capital Gains Tax for 2005, the part of the capital gain which would have been generated before 20 January 2006 will be reduced, if applicable, in accordance with the provisions of the above rule. To these purposes, the capital gain generated before 20 January 2006 will be the part of the capital gain resulting from taking as the transfer value that corresponding to securities to the effects of Capital Gains Tax for 2005.

  2. If the transfer value is lower than that corresponding to securities to the effects of Capital Gains Tax for 2005, it will be understood that all the capital gain has been generated before 20 January 2006 and will be reduced, if applicable, in accordance with the provisions of Rule One above.