Taxes when selling

[brandon]

Hi there,
can anyone advise me what the tax position is when you sell your Spanish home? I believe it is 35% for a non-resident; however does this change if the property is owned for more than two years? We moved out here a year ago, bought a property and applied for Residencia (which will not be finalized until August 2007). However we must now return to the UK. As all of our money is invested in the property we need to know the best way to sell it. It is better to try and sell now before we leave for the UK or to hold onto the property for another year, when of course we would no longer be Spanish residents? Any suggestions please?
Thanks in advance

[bennett]

Hello Brandon
These are only proposals which have yet to pass through the Cortes.

The EU has directed that the CGT should be the same for residents and non-residents but they could standardize it at 35% for all of us.

However, if the rate is lowered for non-residents AEAT will be looking for ways of making up the shortfall and one proposal also being considered is that a non-resident will only be able to sell on production of a certificate from the tax authorities that non-resident taxes, i.e. notional income tax and wealth tax, have been paid each year during the period of ownership of the property.
Bye

[Glyn the Lawyer]

Hi,

The point you make regarding residencia is interesting and it may well be worthwhile considering this in more detail. I make this point because in my experience it can be possible to sell as a resident withoiut a retention ebing applied where you can present confirmation that a residencia has been conceeded (but it may not have yet been issued to you as a card). This may vary from Notary to Notary but I have never experienced difficulties adopting this route - it is however often not that straightforward to obtain this confirmation but it can be worthwhile.

Regards

Glyn Moran
Partner
CB Legal & Fiscal Consultants
Tel.: +34 966 472 660 / +34 699 838 795 / Fax: +34 966 472 510
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