CGT and a "10 year rule"?

Information and questions about the Law in Spain and Andalucia.
El Cid
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Re: CGT and a "10 year rule"?

Postby El Cid » Fri Feb 17, 2012 2:12 pm

Well we all have to do our bit to help out our Greek friends :thumbdown: :thumbdown:

Sid

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Re: CGT and a "10 year rule"?

Postby Miro » Fri Feb 17, 2012 3:04 pm

Which leads me nicely onto the other threads I started about if Greece defaults, and the other one about would you sell if you could.
My dilemna is: should I sell my property now - at a loss on what I paid for it in 2004 but still get clobbered for 9k CGT (yes, I saved on tax when buying by underdeclaring, so I pay the price now) and get my money out of Spain and euros? Or do I just stay put because I'm comfortable and ride the storm out?
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Re: CGT and a "10 year rule"?

Postby El Cid » Fri Feb 17, 2012 4:38 pm

Miro wrote:Which leads me nicely onto the other threads I started about if Greece defaults, and the other one about would you sell if you could.
My dilemna is: should I sell my property now - at a loss on what I paid for it in 2004 but still get clobbered for 9k CGT (yes, I saved on tax when buying by underdeclaring, so I pay the price now) and get my money out of Spain and euros? Or do I just stay put because I'm comfortable and ride the storm out?


That decision is entirely personal. If you consider Spain your permanent home and have no desire to go back to the UK then ride out the storm (if it actually happens).

There is some merit in selling up and renting but the income from investing the proceeds may be too small to cover the rent at current interest rates.

Personally I can only see benefits (solely on a personal basis) to a Greek default as that would improve GBP/EUR rates if only in the short term as all my income is in GBP.

If Spain went the same way then the rate would improve even more.

As for the effect on the value of my house, it makes no difference as I haven't the slightest intention of leaving Spain.

As I said - it depends on your own situation.

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Re: CGT and a "10 year rule"?

Postby Mowser » Fri Feb 17, 2012 6:56 pm

Having read all the posts, I think I'll wait till I'm 65 before I sell up.
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Re: CGT and a "10 year rule"?

Postby El Cid » Fri Feb 17, 2012 7:13 pm

Mowser wrote:Having read all the posts, I think I'll wait till I'm 65 before I sell up.



Smart move Dave!

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Re: CGT and a "10 year rule"?

Postby Miro » Fri Feb 17, 2012 8:30 pm

CGT still exempt over 65 then?
Don't worry about what people think, they don't do it very often

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Re: CGT and a "10 year rule"?

Postby El Cid » Fri Feb 17, 2012 8:38 pm

Miro wrote:CGT still exempt over 65 then?


I pointed that out to you in my first reply to your post.

"Remember that if you are over 65 and resident in it as your family home for 3 years there is no tax to pay. "

I sometimes wonder why I bother to post when people don't read what I say! :thumbdown: :thumbdown:

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Re: CGT and a "10 year rule"?

Postby Miro » Sat Feb 18, 2012 1:50 am

Your help and advice is much appreciated, as always.
Forgive me my momentary lapse of concentration.
Don't worry about what people think, they don't do it very often

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Re: CGT and a "10 year rule"?

Postby scampicat » Sun Feb 19, 2012 9:51 am

Miro wrote:Which leads me nicely onto the other threads I started about if Greece defaults, and the other one about would you sell if you could.
My dilemna is: should I sell my property now - at a loss on what I paid for it in 2004 but still get clobbered for 9k CGT (yes, I saved on tax when buying by underdeclaring, so I pay the price now) and get my money out of Spain and euros? Or do I just stay put because I'm comfortable and ride the storm out?



Can you afford to wait 30 years? We will be taking our money out of Spain when our sale finally completes. We are already out of Spain.
Last edited by scampicat on Sun Feb 19, 2012 2:44 pm, edited 1 time in total.

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Re: CGT and a "10 year rule"?

Postby Miro » Sun Feb 19, 2012 1:44 pm

Interesting. Not trying to solicit personal information, but I am interested to know other's opinions on this; did you lose on your property, are you liable for lots of taxes, in short, has it cost you heavily to leave, and if so, do you nevertheless feel it was worth cutting your losses?
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.

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Re: CGT and a "10 year rule"?

Postby scampicat » Sun Feb 19, 2012 2:42 pm

Miro wrote:Interesting. Not trying to solicit personal information, but I am interested to know other's opinions on this; did you lose on your property, Broke even are you liable for lots of taxes,NO in short, has it cost you heavily to leave,NO and if so, do you nevertheless feel it was worth cutting your losses?


Please see my comments in blue above....

....although we didn't leave particularly for financial reasons, we were always going to return to the UK at some point and decided the time was right to go ahead.

Our sale has still not completed as we have been updating the deeds, but looks likely to complete in the next few weeks.

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Re: CGT and a "10 year rule"?

Postby Mowser » Sun Feb 19, 2012 6:54 pm

Best of luck with the sale scampicat.
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Re: CGT and a "10 year rule"?

Postby scampicat » Sun Feb 19, 2012 7:28 pm

thanks

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Re: CGT and a "10 year rule"?

Postby Miro » Sun Feb 19, 2012 7:34 pm

Glad things have worked out well for you. Good luck with everything.
We also figured we wouldn't stay here for ever, and are not planning on leaving for financial reasons as such, but we're wondering whether it would be better to bail out now even if we do lose a bit, than wait say 5 years and find things are much worse.
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.

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Re: CGT and a "10 year rule"?

Postby Mowser » Sun Feb 19, 2012 7:53 pm

Miro.I assume emigrating to Greece isn't in your plans? :wave:
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Re: CGT and a "10 year rule"?

Postby Miro » Wed Feb 22, 2012 11:44 pm

Sorry to bang on about this, but if anyone could provide a link to an official source stating the applicable CGT rates for gains made during this year, I would appreciate it. When gestors and Hacienda are adamantly quoting different rates, and also different to the ones put forward here, it would be good to have something to point to...
I'm trying my best to trawl through official sites, but if anyone knows where to find it, it would help a great deal. Thanks.
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.

El Cid
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Re: CGT and a "10 year rule"?

Postby El Cid » Thu Feb 23, 2012 9:07 am

The rates I gave you are correct and, as with all the information regarding official figures that I post on this forum, are ALWAYS substantiated from official sources.

I suggest you start looking at the actual law passed last year that gives all the details.

http://www.boe.es/boe/dias/2011/12/31/p ... -20638.pdf

Sid

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Enrique
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Re: CGT and a "10 year rule"?

Postby Enrique » Thu Feb 23, 2012 9:42 am

Hi ,
I think Sid's link has died, so here it is again............

http://www.boe.es/boe/dias/2011/12/31/pdfs/BOE-A-2011-20638.pdf

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Re: CGT and a "10 year rule"?

Postby El Cid » Thu Feb 23, 2012 9:56 am

Thanks Enrique.

It worked 5 minutes ago - I checked it!

I will see if I can get something done about this problem as it is getting really annoying!.

Here's a shortened link in case yours doesn't work next time someone tries it!

http://goo.gl/gRlgR

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Re: CGT and a "10 year rule"?

Postby Enrique » Thu Feb 23, 2012 10:23 am

Hi El Cid,
I've notice this for some time now...post a link check it , works fine then 15 mins later its broke :!:

If you use the URL tab and paste link in between then its ok.

I've posted this work round in "About Forum" some days ago.


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