Tax matters related to ownership in CASAL
When you own a share in CASAL Co-Living, the same basic tax rules apply as if you owned a holiday home alone. We ensure that all practical aspects of local tax payments are handled correctly and transparently, so you can feel secure in your ownership.
Four types of tax are relevant when owning a holiday home abroad:
1. Property tax (local taxes in Spain)
Property tax is paid regularly in Spain. CASAL handles the payments, and the amount is included in the joint expenses paid by all owners. This is included in the monthly ownership costs.
2. Property value tax in Denmark
As a Danish owner, you must pay property value tax, just as if you owned your own holiday home. Each year, CASAL provides the figure for the property value tax and precise information on where to report it in your Danish tax return.
3. Benefit tax
There is no benefit taxation, as a CASAL share is always purchased with taxed, private funds.
4. Capital gains tax
If you wish to sell your share at some point, it will be done according to the same principles as if you were selling your holiday home. Profits are typically tax-free in Denmark when you can document that you have used the property privately during your ownership (called the ‘parcel house rule’).
However, local capital gains taxes may apply in Spain, which is the same as if you had owned a holiday home alone. CASAL will advise you on this when selling your share.
Through our setup with a P/S (limited partnership) as the owner of the property, it is very easy to sell your share, and it can be done without further costs. This is in contrast to owning the property privately, as there would typically be costs for a lawyer, notary, real estate agent, fees, etc.
Therefore, it is by all means the best solution to own the property together with others via a P/S company in Denmark.
We continuously experience owners who wish to sell their share. CASAL assists you throughout the sales process and ensures that both you and the new owner safely complete the transaction.
Our concept has been developed in collaboration with Redmark Revision and Krone Advokater
In addition, we work with leading partners in accounting, tax and law in Spain
- If you have questions about tax matters, we are happy to help you with an overview and can connect you with specialized advisors
Mads Nør Lauvring
(+45) 51 16 87 87 · mads@casal.dk
