Buying a property as a resident or non resident

Information and questions about the Law in Spain and Andalucia.
elusive
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Buying a property as a resident or non resident

Postby elusive » Sat Jul 02, 2016 2:24 pm

Is there any differences interms of costs etc to buying a property as tax resident or non tax resident. If you have a choice is it better to be one or the other.

katy
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Re: Buying a property as a resident or non resident

Postby katy » Mon Jul 04, 2016 8:42 am

Don't know if it still applies, or what the rules are but there used to be no tax for residents if buying under a certain figure. Think around €100,000. I remember reading it some years ago.

Beachcomber
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Re: Buying a property as a resident or non resident

Postby Beachcomber » Mon Jul 04, 2016 11:32 am

If you buy as a fiscal resident there are certain items which can be claimed on your annual tax return. I am not sure about the exemption from tax below a certain figure.

elusive
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Re: Buying a property as a resident or non resident

Postby elusive » Mon Jul 04, 2016 1:40 pm

Thanks

Miro
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Re: Buying a property as a resident or non resident

Postby Miro » Mon Jul 04, 2016 8:53 pm

katy wrote:Don't know if it still applies, or what the rules are but there used to be no tax for residents if buying under a certain figure. Think around €100,000. I remember reading it some years ago.


I've bought several properties over the years for less than €100K, as a fiscal resident, and am not aware of ever having been exempt from any tax (when buying), so not sure what that was? When selling as a fiscal resident, you do not have a 3% retention in lieu of CGT that you would have as a non-resident, but only because you are expected to declare any gain made on your next income tax declaration. If you are selling your main home and are reinvesting the proceeds, you should be exempt from CGT. As a non-resident, you will be liable for CGT. (If, of course, you've been lucky enough to actually make a gain!)
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.

katy
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Re: Buying a property as a resident or non resident

Postby katy » Mon Jul 04, 2016 9:56 pm


Miro
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Re: Buying a property as a resident or non resident

Postby Miro » Mon Jul 04, 2016 10:04 pm

OK. Not very detailed, and probably not relevant to the OP either, though
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.

katy
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Re: Buying a property as a resident or non resident

Postby katy » Tue Jul 05, 2016 9:28 am

True it is a bit scrappy. I doubt if a foreigner would be eligible anyway. Probably like the grants to renovate property or the rural tourism grants which usually go the the relatives of the Mayor etc.

Miro
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Re: Buying a property as a resident or non resident

Postby Miro » Tue Jul 05, 2016 9:47 am

Just to clarify (for the benefit of the OP), I think it refers to tax breaks for young (under 35) and / or skint people - which doesn't really fit the typical profile of a foreign property buyer in Spain!
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.

elusive
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Re: Buying a property as a resident or non resident

Postby elusive » Fri Jul 08, 2016 8:00 am

Just to add onto this question.how long does it take to become non tax resident if you return to the uk.is it as soon as you fill out (cant remember the name of it) form.(the same one you fill in to become a T.R). Thinking about this interms of selling a uk property and the capital gains implications of being a spanish tax resident


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