Capital gains tax
Posted: Fri Dec 2, 2022 4:22pm
Hi all
Can someone advise me re capital gains tax timeline selling property in Ireland and moving to Spain. I know there's a certain time frame to enter spain during the year to avoid CGT. Thanks
Posted: Fri Dec 2, 2022 7:17pm
Super helpful member
It revoves around when you become officially tax resident in Spain.
The tax year in Spain is the calendar year. If you move here and spend more than half the calendar year here, you are tax resident in that year, and the whole of your income in that year is taxable in Spain. Yes, the income you received before moving here in that year too. Ditto for capital gains tax. So if you're selling your property and moving here in 2023, either sell it before Dec 31st this year, or sell it in the first six months of next year and don't move here until July 1st.
Posted: Fri Dec 2, 2022 7:25pm
Herefordjack wrote on Fri Dec 2, 2022 7:17pm:
It revoves around when you become officially tax resident in Spain.
The tax year in Spain is the calendar year. If you move here and spend more than half the calendar year here, you are tax resident in that year, and the whole of your income in that year is taxable in Spain. Yes, the income you received before moving here in that year too. Ditto for capital gains...
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... tax. So if you're selling your property and moving here in 2023, either sell it before Dec 31st this year, or sell it in the first six months of next year and don't move here until July 1st.
Thank you so much. I knew there was something about timing.
Posted: Fri Dec 2, 2022 7:50pm
Helpful member
Unlike in Ireland, Spain charges you CGT on your Principle Private Residence when you sell it as well as all taxing all worldwide income. These can amount to a large bill so best take legal advice and adhere to timelimits as per Herefordjack
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Posted: Fri Dec 2, 2022 7:52pm
TonySmith wrote on Fri Dec 2, 2022 7:50pm:
Unlike in Ireland, Spain charges you CGT on your Principle Private Residence when you sell it as well as all taxing all worldwide income. These can amount to a large bill so best take legal advice and adhere to timelimits as per Herefordjack
Yes I have to be very careful
Herefordjack wrote on Fri Dec 2, 2022 7:17pm:
It revoves around when you become officially tax resident in Spain.
The tax year in Spain is the calendar year. If you move here and spend more than half the calendar year here, you are tax resident in that year, and the whole of your income in that year is taxable in Spain. Yes, the income you received before moving here in that year too. Ditto for capital gains...
Read more...
... tax. So if you're selling your property and moving here in 2023, either sell it before Dec 31st this year, or sell it in the first six months of next year and don't move here until July 1st.
How can you move from July if you sell in the UK in the previous six months. Is it reliant on you not having used up your 90 days. Its all very confusing.
Posted: Sun Dec 4, 2022 10:42am
Manda wrote on Sun Dec 4, 2022 10:16am:
How can you move from July if you sell in the UK in the previous six months. Is it reliant on you not having used up your 90 days. Its all very confusing.
We're are moving from southern Ireland so 90 days scenario is not required
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