Moving advice.

Although they are only table top you would be better with a house than an apartment because apartment blocks can be very strict even if you aren't breaking any laws. If they weren't happy with you having one they would go mad until you went or the kiln did. What I would recommend doing is asking the residents of the building or the person in charge if they would have any problems. But Olivia is a nice area and the property is quite cheap so you would probably get a nice big house at an affordable price, I found ones 50k online and one in Pego which is just beside it for 30k

Hi Martyn,

Thank you for your reply, We will be looking to rent for the first 12 months.  We have been told that if we sell our property in the UK then purchase a property in Spain.  We will be charged Capital Gains Tax by the Spanish tax system.  However if we sell the property, rent for 12 months then buy there are no taxes to pay.  Are you aware if this is true?

Regards

John

I don't know about that because I haven't had to do it. But I would always suggest renting first to see if you like the area or holiday there often enough to know how you feel about the place

The important point is not when you buy another dwelling, but when you become tax resident. 

A Spanish tax year runs from 1st January until 31st December. If you spend more than 183 days in Spain during that time you are automatically deemed to be a tax resident and must pay tax on all monies received. 

RE: CAPITAL GAINS

Please take proper tax advice on this, both in Spain and the UK,  and make sure you complete all the necessary paperwork. 

However, for planning purposes the key for not being liable to Spanish capital gains on your UK house is to sell it the calendar year BEFORE you become TAX  resident in Spain. Note you will become TAX resident if you spend 183 days or more in Spain in the calendar year, plus they do not recognise part years - so if you spend more than 183 days in Spain in any year they will deem you to  be tax resident for the WHOLE year.   However you can sell the UK house in the first part of the year, and then move to Spain in the latter part of the year, ie in July of the same year, as long as you have not had any holidays in Spain in the early part of the year. (Obviously if you have you need to push back the moving date to Spain). 

If your UK house has been your main home this will have the added advantage that you will be able claim 'principal private residence relief' on your UK home and hopefully pay no, or at least less, UK capital gains. 

See here:

https://www.gov.uk/tax-sell-property

Make sure you still submit a UK capital gains return in the UK within the 60 days required and keep a copy of proof for the Spanish authorities. Plus once you move here get your tax advisor to register you as tax resident from January of the year after, and complete any other returns necessary. 

The following link explains 'how to 'avoid' Capital Gains Tax' in Spain:

https://upsticks.es/the-spanish-capital-gains-tax-trap/

However, always seek professional advice where Tax is concerned.