Tax specialist

Hi Trish,

Before I respond, it would be helpful to know where you are tax resident - Spain or UK? - and where is the property located that you're selling, which is likely to attract CGT?

Kind regards,

Kim

I'm tax resident in uk at present sold my home but moving over October r this year .

Hi Trish,

I'd recommend Blevins Frank's in the UK, especially if you sold your UK property last year, or this year, and plan to get Spanish residency this year, as you would then be subject to Spanish CGT.

https://www.blevinsfranks.com/where-we-are/united-kingdom

Kind regards,

Kim

Sorry forgot to mention I do have to pay a small amount cgt on the property in the uk as let out for a few years. Its sold now just waiting to exchange . I will have to pay the cgt after 30days here in the uk was worried I might have to pay in spain also

I've been getting very conflicting answers. I think 

The company you sent me information when I rand them looks like they deal with very rich people lol. Said it more corporate people they deal with and I'm just joe blogs.

Hi Trish,

How rude, that's not the way to do business.  I met them at "A Place in the Sun" before we moved here and made enquiries at their Spanish office in Benijofar, once we had moved; I found them helpful, albeit expensive.

Based on the additional information you've provided, i.e. you've sold your UK house this year, should you become tax resident in Spain this year, you will be liable for CGT here.  However, there are a number of age-based allowances and also, if your UK house was your primary residence and you reinvest all the sale proceeds in a primary residence in Spain, this may mitigate all or most of your CGT liability.  

Of course, you need to speak to an expert in these matters and disclose to them all material facts, in order to get an accurate assessment.  As you've now explained that you already know your UK CGT liability, I'd suggest speaking to Abaco Advisers in Torrevieja; an initial, 1 hour consultation is free.  Whether you retain fiscal residency in Spain or the UK, tax calculations are based on income/profit derived from worldwide assets.  There's a Dual Taxation Agreement between the UK and Spain, so you shouldn't pay tax on the income/profit twice; however, where allowances are less generous in Spain, you may still be liable for additional CGT here.

One way around CGT liability in Spain would be to delay your tax residency here until next year or later (you become tax resident after 183 days spent in Spain in each tax year), but then you are likely to be subject to much higher, post-Brexit income and/or savings amounts in order to meet residency requirements, so that may not be viable for you.

It sounds as if your tax matters aren't as complex as I'd initially thought and I'm sure Abaco would be able to help you.

Kind regards,

Kim

Thankyou Kim for taking the time and effort to respond I will contact them 

Patricia 

Hi Trish,

you said you would be applying in October for residency and just sold your house in Uk, so would that not mean you couldnt be a tax resident this year as you would not have been in Spain 183 days this year. I would have thought your first fiscal year would be 2021 which is declared in 2022. However if you,ve been in Spain earlier this year (doubtful with covid situation) so long as from October to December plus any previous stay dont add up to 183days then I cant see you could be classed as a tax resident this year so Spanish CGT would not apply. Maybe Kim will correct me on this as she is more astute to these matters than myself.

Regards

Pauline.

Thankyou for your response I'll find out about that. Because I I would have to pay too much and I couldn't do that . 

Cheers