Capital gains tax

Posted: Fri Aug 14, 2020 9:40am

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Trueblue

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Hi

I wonder if anybody knows the answer to the question below as finding it very difficult to find the correct information

We are hoping to apply for residency before 31st dec are intentions was to sale are main resident property at home move over go self employed and live off small income from uk + house sale money and are earnings over in spain my question is if we get residency before 31st dec but do not sale or complete sale of are main residential home in the uk until after the 1st January 2021 would we be liable for capital gains tax on that in as I know that we would have no tax liability in uk but not sure if we would in spain this making the the decision hard on to apply now or later

Sorry for the long drawn out question

Thanks paul

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Posted: Fri Aug 14, 2020 10:24am

Cheryl

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Posted: Fri Aug 14, 2020 10:24am

You will become tax resident in Spain from 1st January 2021 and will be subject to CGT. I would suggest you find a tax advisor so you know exactly where you stand and hopefully someone will give a recommendation.
Look at Jim's Guides which are in a tab at the top of the page but please don't pm Jim as he gets inundated and your questions could help other members on the open forum.
To get Residency there are financial requirements to meet, including having a regular income of between €750 and €900 pcm into a Spanish bank and €9,000 savings for 3 months plus proof of health cover.
May I ask what work you would be looking for because opportunities were few and far between even before Covid?

Posted: Fri Aug 14, 2020 5:34pm

Kimmy11

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Posted: Fri Aug 14, 2020 5:34pm

Hi Cheryl,

The minimum financial requirements for first-time TIE applications, until 31 December 2020, have reduced this week:

Online TIE applications

Of course, as things currently stand, when UK citizens become Third Country nationals from 1 January 2021, the financial requirements rise significantly to Eu 28k lump sum and Eu 2,400 per month income.

Kind regards,

Kim

Posted: Fri Aug 14, 2020 6:33pm

Cheryl

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Posted: Fri Aug 14, 2020 6:33pm

Kimmy11 wrote on Fri Aug 14, 2020 5:34pm:
Hi Cheryl,
The minimum financial requirements for first-time TIE applications, until 31 December 2020, have reduced this week:

Read more...

Online TIE applications
Of course, as things currently stand, when UK citizens become Third Country nationals from 1 January 2021, the financial requirements rise significantly to Eu 28k lump sum and Eu 2,400 per month income.
Kind regards,
Kim

Thanks Kim, it certainly looks as if Spain is bending over backwards to get as many Brit ex-pats legally registered before Brexit as possible. I wonder if this is a precursor to relaxing the requirements post transition?

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Posted: Sat Aug 15, 2020 9:30pm

Lancelot

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Posted: Sat Aug 15, 2020 9:30pm

Cheryl wrote on Fri Aug 14, 2020 10:24am:
You will become tax resident in Spain from 1st January 2021 and will be subject to CGT. I would suggest you find a tax advisor so you know exactly where you stand and hopefully someone will give a recommendation.
Look at Jim's Guides which are in a tab at the top of the page but please don't p...

Read more...

...m Jim as he gets inundated and your questions could help other members on the open forum.
To get Residency there are financial requirements to meet, including having a regular income of between €750 and €900 pcm into a Spanish bank and €9,000 savings for 3 months plus proof of health cover.
May I ask what work you would be looking for because opportunities were few and far between even before Covid?

Was it ever monthly income and a lump sum in the bank, even before the developments Kimmy has socialised we have only ever been advised it was monthly income and/ or lump sums in the bank?

Posted: Sat Aug 15, 2020 10:25pm

Cheryl

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Posted: Sat Aug 15, 2020 10:25pm

Lancelot wrote on Sat Aug 15, 2020 9:30pm:
Was it ever monthly income and a lump sum in the bank, even before the developments Kimmy has socialised we have only ever been advised it was monthly income and/ or lump sums in the bank?

It was for us in Orihuela in early 2018 but then we just printed out our UK and Spanish bank statements and didn't need them authenticated and nothing needed to be translated. We also took credit card statements with nil balances but large credit limits and took the deeds for our house here. Our health cover was by S1.