Buying a holiday home ... Economics

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RichardCoeurdeLion
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Re: Buying a holiday home ... Economics

Postby RichardCoeurdeLion » Sun Jun 14, 2015 4:53 pm

Birmingham a hot spot?

That's great, I live there.(well close by now to be honest)

infoseeker
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Re: Buying a holiday home ... Economics

Postby infoseeker » Sun Jun 14, 2015 11:02 pm

Dave the criteria for no CGT is
Over 65
Tax resident
Lived in the property ( which is the main residence) for 3 years

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Mowser
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Re: Buying a holiday home ... Economics

Postby Mowser » Mon Jun 15, 2015 8:35 am

infoseeker wrote:Dave the criteria for no CGT is
Over 65
Tax resident
Lived in the property ( which is the main residence) for 3 years


I know. That's why I'll be selling the house next year and putting the money on a horse!
Dave

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Devils Advocate
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Re: Buying a holiday home ... Economics

Postby Devils Advocate » Mon Jun 15, 2015 8:43 am

What are the tax implications out of curiosity if we sold our holiday home over there? None resident, under 65 and just casual visitors. House is valued on deeds at what we'd get for it, or within a smidgeon I'd guess.
Property owner in Andalucia since 2002. How time flies.

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Mowser
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Re: Buying a holiday home ... Economics

Postby Mowser » Mon Jun 15, 2015 8:53 am

Basically "ouch". 3% will be deducted from your sale price and lodged with Hacienda until you pay the rest.
I know a few people here who sold up - paid the 3% and that was the end of the matter.
Dave

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Re: Buying a holiday home ... Economics

Postby Devils Advocate » Mon Jun 15, 2015 8:55 am

Mowser wrote:Basically "ouch". 3% will be deducted from your sale price and lodged with Hacienda until you pay the rest.
I know a few people here who sold up - paid the 3% and that was the end of the matter.


Thanks very much for answering Mowser, but what do you mean by "until you pay the rest" ?

Apologies for the numpty question.
Property owner in Andalucia since 2002. How time flies.

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Mowser
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Re: Buying a holiday home ... Economics

Postby Mowser » Mon Jun 15, 2015 9:01 am

Dave

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Re: Buying a holiday home ... Economics

Postby Devils Advocate » Mon Jun 15, 2015 9:12 am

Appreciated Mowser, thank you. I suppose that's a bonus for a true declaration of price when you purchase then.
Property owner in Andalucia since 2002. How time flies.

Beachcomber
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Re: Buying a holiday home ... Economics

Postby Beachcomber » Mon Jun 15, 2015 11:55 am

It certainly does not 'take years to get the money back' as indicated in that article. AEAT has a maximum of six months in which to repay any refund due, after that they have to pay interest. Delays are usually caused by errors in completing the procedure or non-payment of non-resident taxes and the capital gain is taxed at 20% not 21%, the 'relief for inflation' has been discontinued and the CGT return is made on form 210 not 212.

Up to date information on this procedure can be found here:

http://www.andalucia.com/forums/viewtopic.php?f=42&t=27591

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Re: Buying a holiday home ... Economics

Postby Beachcomber » Thu Sep 03, 2015 3:32 pm

For property sales made since 11th July 2015 the Capital Gains tax rate is 19,5% (reduced from 20%) This will be reduced again to 19% on 1st January 2016. The retention for non-residents stays the same at 3%.

If anyone has transacted a sale since that date make sure that the person submitting your CGT return is calculating the tax at 19,5% rather than 20%.


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