COMING OFF THE PATRON

[patricia]

I know this has been covered before, but I just want to know how you come of the patron and if I can get there before the end of June. I know there was a post about it but I cannot find it so can someone point me in the right direction!

I have a potential buyer for the flat in the UK and so I will have to move back there for six months and am wondering what the process is re becoming a non resident etc.

[El Cid]

If you are only visiting the UK for a few months and intend to return, you probably don't need to do anything.

Sid

[patricia]

No I want to come off the patron because of paying the capital gain in spain which is massive compared to the UK goes up to a massive 27% whereas in the UK they only take it from when it stopped being my main residence in spain they take it from when I first purchased the property!!

[El Cid]

The Padron has nothing whatsoever with tax. If you are saying that you want to become non resident for tax in Spain, to avoid CGT, you will need to leave Spain permanently and become tax resident in the UK. Then you will need to convince the Spanish taxman that you were not resident at the time you sold it.

Sid

[patricia]

Oh I see so if I sell it now they would want a cut even so.

Yes I know that I would have to leave Spain and that is why I want to know if it is possible if not I will keep it and make plans next year to return to the UK for a bit, but I am looking for the thread that was on here sometime ago where you explained it all. I am not going to pass over the 25k to the tax man it would not be worth it at all. I might just as well put with the hassle of leasehold instead of freehold. Well we do own the freehold but it is till the same almost as having a Landlord everyone does what they like with your money

[patricia]

By the way what has happened to the smilies!

[El Cid]

You are probably using the Quick Reply box at the bottom of the page. This does not have any of the extra options like smilies. If you click on "full editor and preview" you will get all the options.

Back to the CGT, the key point is what your tax residency was on the day you sold the property. It is difficult to just keep quiet about the sale as I assume you declared it on Form 720 as an overseas asset, so you would be obliged to remove it from your asset declaration if you sold it, so it would be difficult to ignore the sale.

Sid

[patricia]

Oh I did not realise that. Yes it would be diffcult and the sore thing is that I didnt really have to declare it because when I bought it iwas only a little over the 50k and gestoria told me not to declare. Ah well we all have to live with the choices we make!

I shall have to make a dicsion and it is probaly that I will not sell because if I take off what I have to pay the tax man here and also in the UK - who will want their share - over 15 years - which I expect to live - hopefully!- that would amount to 2000k per annum and not worth all the hassle of going to the UK etc etc.

Thank you for your help!

[ashtondav]

that would amount to 2000k per annum

Blimey £2 million quid a year Wish I had your CGT problems!

[patricia]

that would amount to 2000k per annum

Blimey £2 million quid a year Wish I had your CGT problems!

Well we can all dream cant we!

I meant to say 2000 pounds!