Capital gains tax

Information and questions about the Law in Spain and Andalucia.
Lavanda
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Re: Capital gains tax

Postby Lavanda » Thu Sep 30, 2021 6:09 pm

I think I would pay up and sleep well at night. When I sold my house in Coín it was in the days of some of the payment being 'black' and undeclared which I was not wild about but wanted to sell the house. I paid the CGT on the declared value. Three years later I got a demand for the 'full' tax and had to pay on the 'black' amount as well. I think the tax office in Spain is not quite as lax as we would like to think ...

Beachcomber
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Re: Capital gains tax

Postby Beachcomber » Fri Oct 01, 2021 6:02 am

Each municipality has a multiplier which is applied to the valor catastral in order to ascertain the minimum value that can be declared without incurring a demand for further taxes.

When completing the form 600 for the payment of transfer taxes a red flag pops up if the value being declared as the sale price is less than the minimum value obtained by this calculation.

Beachcomber
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Re: Capital gains tax

Postby Beachcomber » Tue Oct 19, 2021 11:30 am

Just to confirm that the Capital Gains Tax rate for non-residents is still 19% regardless of the seller's country of fiscal residence.

Manchesteral
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Re: Capital gains tax

Postby Manchesteral » Tue Oct 19, 2021 12:50 pm

gus wrote: Mon Sep 27, 2021 2:08 pm Oops - I forgot the size of the emojis.
If you click on the emoji in the normal manner it will come up normal size, but you knew that, I think !!
It doesn't really bother me, it's just annoying, a bit like those "insulate Britain" creatures :crazy:

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gruff
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Re: Capital gains tax

Postby gruff » Tue Aug 08, 2023 11:10 am

An interesting thread, very informative and I hope it is o. k. to add to it. I am a U. K. resident.
I sold my Spanish house in May, made a nice profit and the 3% tax was paid through my lawyer. She told me that as I was not buying another Spanish property it was an o. k. thing to do.
I do realise I will have to declare the sale on my next tax return and pay a sizeable sum to HMRC. I assume I can knock the Spanish tax paid off that sum but not sure how to do it.

El Cid
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Re: Capital gains tax

Postby El Cid » Tue Aug 08, 2023 11:33 am

The 3% is just a retention against the full CGT charge. You, in theory, need to pay the full amount of Spanish CGT and you can show that to HMRC and offset it against the UK tax.

Sid

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gruff
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Re: Capital gains tax

Postby gruff » Tue Aug 08, 2023 1:40 pm

O. k. Sid, so the way I read that is if I declare it to the Spanish authorities I can use that 3% but if I simply declare the sale on my U. K. tax return I cannot. Probably a bit late now for the former.

Chiquita39
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Re: Capital gains tax

Postby Chiquita39 » Fri Jan 19, 2024 12:09 pm

I am a Spanish resident, over 65, and would like advice about CGT in Spain if I sell my UK property. My house was built in 1991, are there any discounts for the age of a property? Or exemption/relief for over 65s?
If I use all of the proceeds of sale to buy a property in Spain, is there still CGT to pay here? How do they work out the CGT, something to do with land and building and how do you find out about the price of the land as they are not separate in the uk?
Finally, when I get a reply, how do I answer back, this website is very confusing!
Thanks

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Wicksey
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Re: Capital gains tax

Postby Wicksey » Fri Jan 19, 2024 12:29 pm

I would speak to a gestoria. It is complicated and as we are also in the middle of selling a UK property which we had bought to rent out, we know we shall have to pay it, but I will put it all in the hands of our gestoria who does our tax returns. We also have to pay CGT in the UK but I think I can do that return myself. I don't think being over 65 makes any difference, only if you are selling your Spanish home. As El Cid says on another thread, I think it must have been your habitual home in the UK and you use all the proceeds to buy a home here, in order to avoid CGT. Personally, I am not going to even attempt doing the Spanish tax return for it!


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