My mother-in-law has a lovely property in Campoamor, she has owed the property for nearly 25 years she has been a Resident of Spain for 10 years. My husband and I have a Finca in Murcia outside San Javier, my husband is retiring from the British Army Aug 09 and we too will become Residents. We as a family have been looking into a few options to make every ones life more comfortable.
We have spoke about converting an old garage to an apartment at our finca for my mother in law to buy or rent off us and selling or renting Campoamor property.
We do realize we will have to change our Escitura on the finca if we convert the garage which would cost money.

Questions:

If mother-in-law sells Campoamor, What taxes does she pay out of the property proceeds if she banks all her profits?
If mother-in-law rents Campoamor, What taxes does she pay on the profits?

If she buys the apartment on our property because she sells Campoamor will she pay less tax on her sale proceeds from Campoamor?

Can we sell her an apartment on our property (which doesn’t exist yet) our is this not possible?

Sorry for all the questions but we would like a bit of direction on this, just trying to make life easier as we are all getting older.

Thanks