Are you due a rebate on your Spainish Capital Gains Tax payments?

Discussion in 'Spanish property' started by Nicholas Wallwork, Mar 9, 2009.

  1. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

    A ruling by the EU has confirmed that the differing rates of Spanish Capital Gains Tax for residents and non-residents was illegal. Are you due a rebate on your historic Spanish capital gains tax payments?

    For more details check our article at "UK holiday homes in Spain attract capital gains tax rebate".

    Views and comments appreciated.....
  2. law

    law Member

    what about other non residents?? I mean non European citizens......
  3. DC

    DC Member

    Good question. I think this an issue with Europeans, and people in the EU. People outside it is not applicable to my knowledge. If you have any non europeans, that would be interested, I can ask the lawyer, I would need to know that there is a person who is serious to pursue if non european. ie. I do not want to disturb lawyer if there is nothing to follow through on.

    Thank you.
  4. advoco

    advoco New Member

    So what you are saying is the clock is ticking for those who sold say 3 or 4 years ago. They could miss out if they leave it too long to make a claim? I have heard different time limits spoken about.
  5. DC

    DC Member

    Welcome to spain, different lawyers say different things, and the law can change with the government.
  6. rowlandsbb

    rowlandsbb New Member

    I was talking to a Uk resident who has made a claim for overpayment of CGT which he paid in 2005 but to date his lawyer in Marbella has been unable to get the repayment
    He told me that his lawyer, who is yet paid anyone back yet!!

    Can anyone shed any light on this week
  7. alyna

    alyna New Member

    I'm already confused with Spain's different lawyers statements.

    Do they have different Law's practiced about this issue??

    Is there no fix law about taxes payment??
  8. LaurenX

    LaurenX New Member

    Ok I am sure that there are a few cases but during the property boom I am also sure that many accepted cash as part payment to reduce the profit they made on paper...... I have come across agents that actually even recommend it.....

    This practice is illegal but appears to be the way things are here. I think therefore that seeking compensation after having done so is kicking the Spanish government when it is down and the expats and locals that live here are going to suffer for it.

    Not to say that some have been straight and have declared every cent of their sale but I think it therefore may be worth establishing this issue with the people that contact you asking whether they are liable candidates.

    As a separate note many brits do not pay their annual IRNR tax either and then expect the government to be quick in giving a rebate....

    It is true that the 35% tax was abusive and good to see that compensation is being granted but from my experience in Spain many brits are always looking to knock the Spanish government in anyway they can..... Is this because it is harder to get away with in the Uk do you think?
  9. DC

    DC Member

    Hi I think the next big pay back for expats will be the inheritance tax, because it is discriminatroy for non spanish, so in time, spain will get in line.

    It is not about kicking anyone when they are down, it is about doing what is right and proper and not to be racist against any nation. We are all europeans.

    In truth the rules should be the same for not only EU citizens but for all the people from around the world.
  10. alexTenerife

    alexTenerife New Member

    Spanish capital gains tax is complex. It is paid by residents of Spain on their worldwide assets and by non-residents on property that they own in Spain. The main home of Spanish residents can be exempt depending on each case.
  11. Chris Tian

    Chris Tian New Member

    I heard a lot of rumors and I am not sure what to say. The lawyers are saying different things so how citizens can come to a point.
  12. Bissime

    Bissime New Member

    Did anyone get a refund in the end? Was it just another scam at the time?
  13. Europe Real Estate

    Europe Real Estate New Member

    Non EU resident business entities pay 24% over gross rental income. No deductions are allowed. EU residents pay 19%. Expenses related to renting can be deducted. Spanish Business entities pay 25% tax on rental income. All deductions are allowed including depreciation. Check with a lawyer for up to date information.

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