On the sale of a property, provided that the transfer value is higher than the acquisition value, the capital gain generated must be declared for non-resident income tax purposes.
The consequences of failure to comply with Model 720 are disproportionate in view of the objectives pursued by the regulatory framework, which are to ensure tax control and the fight against fraud.
The new method for calculating capital gains tax will offer taxpayers the possibility of choosing between two options (objective and real method), being able to opt for the more favorable one, as long as the value of the land undergoes a real increase.
This is a quarterly form that must be filed electronically or in person by the self-employed, SMEs and Communities of Assets, obliged to withhold or pay on account of Personal Income Tax, Corporation Tax and IRNR, which pay income from movable capital.
Newly created entities will have a reduced tax rate of 15% in the first tax period in which their taxable income is positive, and in the following period, provided that the entity is newly created and carries out economic activities.