Spanish Capital Gains tax on UK property

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Chiquita39
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Spanish Capital Gains tax on UK property

Postby Chiquita39 » Fri Jul 13, 2018 1:52 pm

Hi I have looked at all the posts and cannot find answers that fit my situation. I am resident in Spain but do not own a property here, I rent full time. I have a property in the UK, which was my permanent and only home, that I have rented out full time since I have been here. I fill in a Spanish and a UK tax form. I am considering selling my house in the UK to buy another smaller flat near the coast, that I can use when I go there on holiday. I understand that I will not have to pay much UK capital gains tax as it was my permanent home and since my move to Spain, has been rented out so there are consessions for that, and the CGT is calculated from 2015. My question is will I have to pay Spanish Capital Gains tax? I am over 65 and will be investing all the sale money in a new property. I have been told by Belvin Franks that I will have to pay CGT from the date I bought the house in 1991, and he worked it out as CGT of 15000 euros!
Can someone please tell me whether this is correct?
Thanks

El Cid
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Re: Spanish Capital Gains tax on UK property

Postby El Cid » Fri Jul 13, 2018 4:03 pm

I think you will have to pay. The UK house is not your principal residence, so you do not get the reinvestment or over 65 exemption. It is treated as a holiday home. A resident, by definition, cannot have their habitual residence outside Spain.

The UK tax will be low for the reasons you mentioned and you should be allowed to offset it against the Spanish tax.

Sid

elusive
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Re: Spanish Capital Gains tax on UK property

Postby elusive » Fri Jul 13, 2018 5:55 pm

Agree with cid. We are in the same boat. Talked to our gestor and she confirmed what cid and others have said. We own and rent out our home in the uk which pays the rent for living full time here. if we sold the uk property we would get clobbered for CGT even though we own a box standard semi in the north of england that has hardly gone up compaired to those south of the watford gap. so you are basically stuck. Unless of course you live here under the radar.

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patricia
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Re: Spanish Capital Gains tax on UK property

Postby patricia » Thu Jul 19, 2018 2:25 pm

The problem is that you have to pay for the gain from when you first purchased it. I am in the same boat. Basically stuck as the CG is huge and they make no allowance if you purchase another property.

I note that is also the same with the UK now whereas up to 2015 it was from when it was your date of residing in it. :thumbdown: I purchased mine just before you so it a lot of money going back so many years. :(
Torrox Costa "El mejor clima de Europa"

elusive
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Re: Spanish Capital Gains tax on UK property

Postby elusive » Thu Jul 19, 2018 3:57 pm

Yeah we bought the house in 91 aswell. The only option is to leave spain offically this year. Sell the house in the uk early next year.then you could move back to spain around july as you dont become tax resident until after 6 months which would take you into 2019 a new spanish tax year


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