Tax Reclaim – Spain Capital Gains
May 10 2010, 1:43 pm
We first started flocking to Spain in the 1970′s. The package holiday made areas like the Costa del Sol an affordable holiday for millions.
Since then things have changed tremendously and there are thousands of British people who currently or have previously owned property in Spain. The attractions of a home in the Mediterranean have proven to be a winner in the UK.
It now seems that Spanish property investors could be entitled to a refund of their Spanish Capital Gains tax. This means if any of you sold a Spanish property between January 1st 1997 and December 31st 2006 you can get your money back.
How is this possible?
A recent ruling by the European Court of Justice (ECJ) confirmed that that non-Spanish residents were unfairly charged 35% in Capital Gains Tax compared to 15% charged to local Spanish residents. As a result it is now possible to submit a claim to get the 20% difference back from the Spanish Tax authorities.
It has been estimated that the homeowners who sold since 1997 could be due an average £13,500 tax reclaim. As a result, former Spain property owners could be entitled to claim a tax refund for missing interest at a rate of 6% from the date the reclaim is presented, making it possible for the total reclaim to be even higher.
Commenting on the subject, Eduardo Fernandez Martinez, expert in the Spanish Property Tax sector had this to say, “This is breaking news for the non-resident taxpayer.
The Spanish Tax Authorities have been inundated with claims since the ruling of the ECJ. The result that it was both discriminatory and unfair to charge a higher tax percentage is both deserved and overdue. Non-residents will now get what is indebted to them for investing in Spain for years.”
How do I know if I qualify?
The qualification process is simple.
- You sold your Spanish property between January 1st 1997 and December 31st 2006.
- When you sold your property you were not a Spanish Resident
- You have a copy of the purchase and sale deeds of your property
- You have the Spanish Tax form Modelo 211 and / or Modelo 212
What next?
There are a number of organisations which are trying to help people facing this challenge. If you do meet the criteria, it is recommended that you do some research into your property and make sure you have all the required documentation.
It is then a question of finding the right organisation to help you.
