If you are selling your primary residence you are not liable to pay capital gains tax. Again you will need to prove that you have lived in Spain for 3 years or more and intend to continue living here.
If you don't decalre your taxes here, but can prove that you earn less than 11, euros per year, then you are exempt from paying Capital gains tax. They will be able to tell you the tax accrued if the property was to be sold on that date.
More search options. Reset search. Sea views. Air conditioning. Central heating. Roof terrace. Separate guest accommodation. Back Printable page View My Favourites. Expenses when selling a property in Spain When you sell your house you will need to pay tax to the Hacienda or tax office for the profits you will have made on the sale of your house.
Foreign residents To qualify and be treated as a Spanish resident requires you to have been living in Spain for 3 or more years and to be able to prove this, by providing the previous 3 years tax returns, an escritura in your name that is more than 3 years old or a certificate from your local town hall to say that you have been registered as living there for more than 3 years. Under the double taxation treaty the tax paid here can be deducted from any liability in the UK.
I presume I need a valuation on the date I became resident, rather than basing the gain on the original cost price when I was a UK resident. The tax is based on the purchase price plus costs then the sale price less costs and you pay tax on the difference. Hi Suzanne. Thanks for your Hi Suzanne. Thanks for your reply.
The key part of my query related to the date I became a Spanish Resident. Surely the Spanish gain is solely the element from the value of my property at the point I became a Spanish resident, rather than the original cost where I was a UK resident? In which case, I would need to get a property valuation at the date I left the UK??
Unfortunately, the capital gains is calculated from the date of purchase of the property to the sale. When you became a resident makes no difference. If a Spanish resident and tax If a Spanish resident and tax resident for more than 3 years and over 65 and you sell your house to return to uk do you have to purchase another property can you just return to uk with the money from your sale. If you are a tax resident for more than three years and over 65 and you sell your house when you are still a resident then there is no capital gains tax to pay.
However, you must still complete the tax declaration for that year as a resident. Hi, I am completing on a Hi, I am completing on a villa in Alicante at the end of June, I am selling my UK house but might not complete untill August, would it be best to wait untill January to become resident in Spain and just be non resident for the rest of this year and just stay for the 90 days to advoid Capital Gains Tax.
Thank you. Hi, We are currently planning Hi, We are currently planning on selling our family home this year in Ireland and moving to Spain. I saw in one of your earlier comments if we move in the same year that we sell our home we are liable for CGT.
However in Ireland If you spend days or more in Ireland over a period of two consecutive tax years, you will be regarded as resident for the second tax year which applies to us. Does this supersede Spanish tax law to leave us with no liability as we will not be deemed tax resident? We are planning on moving in May to enrol our kids in school but if we need to ensure that we are not in the country for more than days than we will have to move in mid July.
I appreciate your help on this. Many Thanks. If you sell and move to Spain in the same tax year and are here for days then you have to pay capital gains tax here. It's better to sell in Ireland and not come to Spain until the following year.
How much will I have to pay? I have not been a Spanish resident. I am a resident in Spain for I am a resident in Spain for more than a year, and I am selling a small property Urban Land, no building on it; price is less than 50K Euros that I have had for more than 20 years in my country of birth, outside the EU, i. Do I have to pay a tax here in Spain? Thanks for your help. If I am resident in Spain and If I am resident in Spain and sell a property back in UK that has no capital gain is there any tax to pay at all?
The property has to be declared and if there is no capital gain then there is no tax to pay. I sold my house in the uk I sold my house in the uk before moving to spain intending to become resident but because of not being able to settle only stayed in our spanish villa for less than 6 months at a time over a 2 year period using it as a holiday home. When returning to the uk residing with my daughter. We have now sold in spain intending to re-invest the proceeds for our main residence in the uk.
Are we liable for CGT. Am I right in thinking the way to reduce the CGT would be to return, live in the property one year and then sell it there as first resident. Is that right? For it to be your residential home you would have had to have lived in it for three years prior to the sale. You would not be residents in Spain as the property is in the UK. I am shocked by this because I have never received any form of notice from the Spanish authorities.
I was 67 when I sold the Spanish house and then bought my home in the UK several months later. Is there not a time limit to claim for CGT claims? Thanks in adavance. As a file has been opened the time line of four years is extended. Any idea how much this will be and when may I be likely to receive it. And if so, who do I pay it to? If not, then there is a fine.
I am resident in spain and I am resident in spain and have a property in the Uk that I bought 25 years ago so the gain on it is huge about k. My principal home is now in spain. This will be the value of purchase plus costs, value of sale less costs and then an allowance for the time if purchased before Then you deduct any tax paid in the UK under the double taxation treaty. If we move back to the UK, for how long after our return to the UK are sales of UK property affected by spanish capital gains please?
We have lived in Spain for 12 We have lived in Spain for 12 months and now considering selling our UK property which we rent out. We only purchased the property in and not sure if CGT is payable because we have only owned the property since that date. We are non residents. Our solicitor has chased the tax office but to no avail. Is the tax office in Spain accountable to anyone? Is there a phone number or email address available for non Spanish speakers to raise queries?
Any advice would be gratefully received. It can take a long time for the Tax Office to process this. There is no number for non-Spanish speakers. The telephone number for non-residents in Madrid is 91 but for earlier presentations you will have to go in person to the corresponding office in the capital of the province and arrange an appointment as no information is given by phone.
We already own a small house in Spain which we plan to keep. We now want to buy a 2nd property in Spain. Our aim is to move to spain and use the new property as our primary residence and become residents. Have I got it right that it would be best for us to wait until before becoming residents in Spain? Thanks for any advice. Who tells us how much capital Who tells us how much capital gains tax we need to pay when we sell our garage space in Spain and how is it collected.
This is a legal requirement when non-residents sell property. To calculate this profit you need firstly to ascertain your original purchase price. We then take your current selling price and deduct from it the costs incurred in the sale legal fees etc , thereby reducing the final sale price.
Now you have your original purchase price and your final sale figure, so we can work out your net profit and calculate your Capital Gains Tax liability. In either case, Form H is submitted to the Tax Office, either claiming the outstanding balance or enclosing payment for the sum owed. I own a UK property that has doubled in value since I bought it back in The outstanding mortgage is important to know that this is factored in as I have quite a bit left to pay off that will be paid off with the sale albeit that there will still be CGT to pay due to increase.
I am currently renting here in Spain and looking to buy a house here. Further to point 2, can I buy here in Spain first and then sell later the UK property and still benefit from this relief? This is a complex issue. However, you would normally have to be a tax resident for 3 years before any benefits can be obtained. Hi Hi We are saleing our Spainish property that we have own for approximately 1year.
As we understand it there will be cgt on any profit at the rate of 19 per cent. Is the the only only tax payable?. We are in the process of We are in the process of selling our only house which is in the uk. When it sells I plan on taking early retirement and immediately moving to Spain. I am 51 and my wife is The cgt that seems liable will completely change these plans. Are there no easy solutions? The only way to avoid capital gains tax is to sell the property in one year and not come to Spain until the following year.
Since we purchased, exchange rates plummeted as well as the property market. Would I be liable for any tax? Capital Gains Tax is due on the profit made on all property sales in Spain.
This is a legal requirement when Non-Residents sell property. To calculate this profit we need firstly to ascertain your original purchase price. We do this by. I was resident in Spain. I I was resident in Spain. What is the time scale to reinvest the gain in a new property to avoid CGT? Hi David, The time scale for reinvestment is normally 2 years, this would have been declared in the Tax delcaration where you would have promised the amount to be reinvested.
I have a question regarding Property Capital Gains Tax: Can a Non-Resident profit from a roll-over relief if the sale proceeds are re-invested in another property in another part of Spain?
Hello, No, unfortunately this is only for residents in Spain that sell their main property and where they have lived permanently at least 3 years. At this point I am undecided whether to sell or to rent. I would like to understand the tax position in the event that I decide to sell the property.
The total cost of purchase can include transmission tax, lawyer, notary and registration fees. Is this correct? An official licence was obtained for a minor reform and taxes paid. No structural work was conducted in the reform process. I understand that there are no allowances that relate to any of the money spent on the reforms when calculating my CGT obligations. The reforms included new kitchen and appliances. Are there any other deductions allowable such as community fees, electricity, local council taxes, when calculating CGT?
Will there be another tax applied to the sale called Plus Valia and is this a tax that I will pay? If so how is it calculated? I understand that all selling fees and lawyers fees can be included in the final CGT tax computation. Are there any other taxes and or items that I have omitted? Hello Tim, Will try to answer the best as possible below to your queries: 1. Yes, this is correct. The answer is correct there are no allowance for minor works carried out on the property, had it been an New Building and extension of the property with a new Title Deed then this would have been allowed.
No, unfortunately no. Selling feed such as the estate agents commission can be deducted. We believe you included everything in your list. A few queries from an old sea salt. Will gladly reimburse if required for your time and expertise! I have been Non-Resident in Spain since mid I return to Spain during my field-breaks. Therefore, I am in the UK for approx days out of days.
Am I still legally a Non-Resident with around days per year living in Spain? Since August , I have lived in Granada and intend to retire there in when I reach 66 years. When I retire, I believe it will be mandatory to take full residency as my presence in Spain will become permanent.
Please can you confirm? My property in Granada was purchased for circa , There is no outstanding mortgage Should I sell my house after 4 to 6 years after retiring and have taken full residency status, I believe I might be exempt from Capital Gains.
Please can you clarify if my reasoning is correct or otherwise? If any profit from the sale of the Granada property was transferred back to the UK, would I be subject to any UK foreign earnings taxes the money would probably be invested into a retirement apartment? We do not know if there will be change of laws when you intend to retire in , but according to todays situation you will have to become resident in Spain if you intend to live permanently in Spain.
According to todays tax situation if you are over the age of 65 years old, you are pensioner, have been resident in Spain for over three years and the property you are selling has been your main residence you willl be exempt of Capital Gains Tax. Dear Sirs As non residents we built a house in spain on ground we already owned. Property sold end for ,Euros. All paperwork of no value to the purchaser, destroyed in Jan Our Gestoria argued that the property was sold with a house, and despite us no longer having the builders receipts the value of the build was approx E plus costs.
Agencia Tributaria has reassessed the CGT now due at about 41,euros and we are in the process of appealing. We have had to pay 5,thousand euros in April in order to defer payment and appeal and further payments of some 2,thousand euros per month for the next 12 months.
The Agencia has made no ruling as yet, I gather it has 6mths to respond. This means shortly if we receive no ruling, we will have to appeal to a Tribunal to overrule the Agencia and have our payments returned. I am very unwilling to continue to make payments as the amount demanded is patently incorrect. If the Tribunal does not overrule the Agencia, we will not receive any repayments either. Please can you advise if this is legal that the agencia can invent this CGT due when we provided all the paperwork to the Notary at the time of registration of the property.
This seems to be a false calculation we are being asked to pay.. Dear Jennifer, It is complicated to give you detailed information without seeing the documentation of the property. In these cases it is vital that you have all documentation and paperwork in place and in order, without it is very difficult to claim anything at all from the Agencia Tributaria. Also the registration of the building should have been done before to avoid any possible issues. We assume you legal team is doing all that is possible with the tools and paperwork they have on the property.
Sorry we can not really be of any further assistance. But this was all taken care of when property was sold, what she do? Hello, Thanks for your message. We would need to see all paperwork, taxes paid, and letter of the Tax Authority to be able to asses in this matter. If you wish to send us all documentation on your case you can do so by emailing us at info abacoadvisers. Dear Miriam. No one seems to be able to confirm. Is the gain on the , euros or euros?
Many thanks in advance IAN. We then take your current selling price and deduct from it the costs incurred in the sale legal fees etc. We can not do this if you paid by cash and have no VAT receipt. Hi, Our recommendation is to have your solicitor claim the to the buyer and their representative.
Hi Anne, Yes unfortunately yes, you will have to pay property tax. Should you need assistance please contact our colleague Jessica at the following email jsp abacoadvisers. My husband and I bought an apartment in Spain in for , euros. We want to sell it but it but we will sell it at lost. According to the market value it is worth , euros. We are non-residents. We have finished paying for the mortgage.
We are over 65 years old. How much? Do we have to pay Income tax in the UK? Even though we will not make any profits. Should you need any help in the process please contact us at info abacoadvisers. If you are residents you would pay Tax on your world wide income including the proeprties, there could also be Wealth Tax on top of income Tax.
The rent for the properties has to be declared in the UK as well as in Spain, Tax paid on the rental income is deducted from the Tax to pay here under the double Taxation treaty.
Should you have any further queries please do not hesitate to contact us at info abacoadvisers. I am a non resident but have owned a small town house in a village since Would i have to pay any tax as it will be sold for a loss?
We currently have an offer on our home in Spain. I am 69 years old and my wife is We have been residents in Spain for the past 8 years and permanent residents for the past 1 year. Will my wife be liable for CGT on her half of any profit made? This is our only residence, we do not own any other property. Thank you so much. Hi, if we sell our spanish home privately without an estate agent, who pays the solicitors fees, the seller or the buyer.
Hi Janice, The buyer will pay for his solicitor and the seller for his own solicitor, if you have the same solicitor in the process if depends on the agreement you reach. If you have any authority for your answer, that would be greatly appreciated. Hi Kirsten, Thank you for contactin us. For example, is you sell a property for Hi, I have Spanish recidencia and have had for 15 years, but am British. Am I correct that if you sell your property in Spain but then fully reinvest any profit in further more properties in Spain you do not pay the capital gains tax, because you will be paying the tax on the new property or properties?
Because I am paying the tax on 2 new property purchases, would I still have to pay the Capital gains on the profit from the original sale? I was told if profit is reinvested in to the Spanish property market within a 2 year period you do not pay the tax on profit? Hi Andy, It is correct that if you sell and reinvest any profit you will avoid the capital gains tax, but if you buy two properties you will have to pay capital gains tax as you can not have two different main residences.
Hi, we have been living in France for fifteen years, and the plan is to sell our home and enable early retirement by living in rented accomodation in Spain. Trouble is, we have heard that we may be subject to capital gains tax by the Spanish authorities, even though it is our principle home?
Hi Richard, Yes this would be the case, it is always advisable to sell the the year prior to coming to Spain to be a Resident. Will my wife and her brother be liable for any Taxes or Capital Gains Tax on the property before they become the legal owners of it? If so what amounts are they When they become the legal owners of it , they both aim to sell it asap and she and I will return to the UK, what tax liabilities will there be when the Villa is sold Thank your help Geoff Cherry.
Hi, First they will inherit, they will become owners and will pay Inheritance Tax. The reduction in the Valencia Region is Please do not hesitate to contact us should you have any further queries. I bought land in Spain in with my Husband who died 6 years ago. We were both OAP s when we moved here and my husband was disabled..
We were both Spanish residents but have not paid tax or been asked to do as we only had some money from our British sale. We have always paid British Tax. Cash price for the land was 40, euros. As I am now disabled and not able to keep the property would like to return to Britain before Britain is totally out of the EU.
We built up a small casita, pool and a summer house and kept bills to prove this. As I am 80 years old this year. Thank you for your help. Hello, We are sorry to hear about your situation. Should you request any assistance from us please call us at or email us at info abacoadvisers. Hi I have been sent this regarding being able to reduce the selling price of your property by taking away the balance of the mortgage when you sell.
Hi, In order to be able to obtain relief when selling you residential home to purchase another you must have owned the property and living in the house for over three years as a Tax Resident and be reinvesting the full amount in the new property.
If you do not reinvest the full amount then you can only dedduct a percentage. I have received a gift from my parents of a property in Spain. All taxes are paid there. However, is there anything I would need to declare being a resident myself in the UK?
Hi Alejandro, No, you will not need to declare it being a resident in the UK.