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 ?
CGT Relief
- fincalospinos
- Resident
- Posts: 1008
- Joined: Sat Jul 16, 2005 9:17 am
- Location: Caleta de Velez
CGT Relief
Hardworking resident !!
-
- Andalucia Guru
- Posts: 11081
- Joined: Tue Jun 15, 2004 11:11 pm
- Location: Guadalhorce Valley
Re: CGT Relief
You can only deduct legal expenses for the cancellation of the mortgage.
- fincalospinos
- Resident
- Posts: 1008
- Joined: Sat Jul 16, 2005 9:17 am
- Location: Caleta de Velez
Re: CGT Relief
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.
-
- Andalucia Guru
- Posts: 16081
- Joined: Sun Oct 24, 2004 10:42 pm
- Location: La Herradura, Costa Tropical, Granada
Re: CGT Relief
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.
Sid
Sid
Re: CGT Relief
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...
Re: CGT Relief
I hope so guys as it would be a big saving for us.
-
- Andalucia Guru
- Posts: 3584
- Joined: Tue Feb 27, 2007 8:20 pm
- Location: Merseyside, formally Torremolinos
Re: CGT Relief
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!
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.
"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.
Re: CGT Relief
Thanks Miro, yes we intend to purchase before year end.
Who is online
Users browsing this forum: No registered users and 72 guests