CGT Relief

Information and questions about the Law in Spain and Andalucia.
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fincalospinos
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CGT Relief

Postby fincalospinos » Mon Feb 03, 2020 4:08 pm

Can someone give some guidance on the following scenario.

Full time resident in Spain, fiscaly domiciled in Spain, under 60 years of age.

Decides to sell their main home of 5 years.

Decides not want to buy another house but to rent somewhere long term.

Would any mortgage interest payments be deductable from the profit on the sale ?
Hardworking resident !!

Beachcomber
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Re: CGT Relief

Postby Beachcomber » Mon Feb 03, 2020 4:31 pm

You can only deduct legal expenses for the cancellation of the mortgage.

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fincalospinos
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Re: CGT Relief

Postby fincalospinos » Tue Feb 04, 2020 9:07 am

Thanks Beachcomber.
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marios
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Re: CGT Relief

Postby marios » Tue Feb 04, 2020 6:02 pm

Just a question on CGT Relief re reinvestment of house sale from Spain to uk, I take it now we are out of the EU ie EEA that I cannot use this to avoid capital gains tax bill or is it still available whilst the transition period is in place till the end of the year.

El Cid
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Re: CGT Relief

Postby El Cid » Tue Feb 04, 2020 6:54 pm

It’s not clear, but it may be OK if the country of purchase is one of the countries that swaps financial information. You do have until the end of the year before the rules may change.

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elusive
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Re: CGT Relief

Postby elusive » Tue Feb 04, 2020 8:21 pm

Yeah until the end of the year we are still in the EU in all but name and follow the rules.so sell up before then...

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marios
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Re: CGT Relief

Postby marios » Tue Feb 04, 2020 8:25 pm

I hope so guys as it would be a big saving for us.

Miro
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Re: CGT Relief

Postby Miro » Wed Feb 05, 2020 6:12 pm

As far as I know, the exemption/relief applies if you are reinvesting the sale proceeds in another EU country, or another EEA country. I'm not sure, but I am not aware of any intention for the UK to remain/become a member of the EEA. So I wish you well with selling ASAP. I would aim to have the sale, and subsequent purchase, completed before the end of this year. Although I think you are normally allowed a 2 year grace period in which to reinvest, I wouldn't want to take any chances!
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marios
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Re: CGT Relief

Postby marios » Wed Feb 05, 2020 6:18 pm

Thanks Miro, yes we intend to purchase before year end.


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