Selling and buying property

Hi there

Unfortunately, the short answer is, as a non resident, yes. CGT in Spain can be quite complex and demands are different depending on residency status. Having fallen foul of this myself, I recommend you seek professional advice 🤪🥂

my understanding is that if you buy another property within 2 yrs then no CGT is payable

If you are resident in the UK then you will also be liable for CGT in the UK, calculated on the sterling equivalent of the value when purchased and the sterling equivalent when sold.  As there is a dual tax agreement between the two countries, HMRC will take into account any tax paid in Spain when calculating the amount due in the UK.  Sadly if you purchased when the exchange rate was good (say €1.50 to £1) the drop in the exchange rate will mean that you have made a considerably higher profit on paper in sterling than in you actually have made in euros.  

Because tax is complex, and your own personal situation may produce special circumstances, you do need to seek professional advice both in Spain and in the UK.

Hi warty

As a non resident, I paid CGT even though I was buying another property. There are some allowances against that payment, but the claimback is within a timescale (quite a short one too). CGT in Spain appears a complex issue which it why it’s advisable the OP should seek professional advise🤪🥂

Hello Angebadge

I didn’t think buying another house would be so complex. I’m going to take professional advice on this. Many thanks for your advice.

Hi Warty99

Thanks for your input. I hope you are right. That would be a big bonus. Looks like I’ll have to seek professional advice. Once again many thanks.

😄😄 to say nothing of being expensive! Usually 4-6% of sale price for estate agent, 10-12% plus, on purchase price 🤪🥂

Hello Davebev1

I confess I never even thought of paying capital gains tax in the UK on the profit from the sale of a Spanish property. I only last week completed my tax return so I’ll have a look at the HMRC notes to see if I can find any information from them. It seems this is a minefield so professional advice is clearly needed. Thanks so much for your advice.

Oh boy......😟