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Spanish capital gains tax

Posted: Wed Aug 4, 2021 5:32pm
9 replies251 views7 members subscribed
Chris641

Posts: 7

Location: Villamartin

Joined: 9 May 2019

My husband and I are taking early retirement and plan to move to Spain later this year (hopefully). We have owned a property in Orihuela Costa for approx 14 years. We are currently in the process of selling our home in the UK and then intend to apply for Spanish residency and make the move. If we sell our property here in the UK prior to getting Spanish residency but then get residency afterwards, will we be liable to pay capital gains tax on any profit made from the sale of our UK property does anyone know?

Thanks in the meantime

davidsnoxell

Posted: Wed Aug 4, 2021 6:36pm

davidsnoxell

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Location: Lliber

Joined: 18 Sep 2015

Posted: Wed Aug 4, 2021 6:36pm

I think you need to sell in one year I.e before December 31st 2021 and become residents in 2022 to avoid cgt

killjoy

Posted: Wed Aug 4, 2021 7:44pm

killjoy

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Posted: Wed Aug 4, 2021 7:44pm

If you own property in Spain you must file an annual non-resident income tax return including cgt.

Chris641

Posted: Wed Aug 4, 2021 7:57pm

Chris641

Original Poster

Posts: 7

Location: Villamartin

Joined: 9 May 2019

Posted: Wed Aug 4, 2021 7:57pm

killjoy wrote on Wed Aug 4, 2021 7:44pm:

If you own property in Spain you must file an annual non-resident income tax return including cgt.

Sorry but does this mean we have to pay CGT even if we do not have Spanish residency

Lancelot

Posted: Wed Aug 4, 2021 8:30pm

Lancelot

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Posted: Wed Aug 4, 2021 8:30pm

Chris641 wrote on Wed Aug 4, 2021 7:57pm:

Sorry but does this mean we have to pay CGT even if we do not have Spanish residency

if you are not tax resident in Spain the year you sell your UK home then you shouldn't have to pay CGT in Spain.

its important you spend less than 183 days in spain that tax year.

The Spanish tax year runs from jan 1st to dec 31st and you pay a year in arrears.

There are some threads on here which cover the subject if you can get the search function to work for you :)

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Kelvin1960

Posted: Wed Aug 4, 2021 10:48pm

Kelvin1960

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Posted: Wed Aug 4, 2021 10:48pm

Capital Gains Tax After Brexit

Useful thread

the ashes 40

Posted: Wed Aug 4, 2021 11:43pm

the ashes 40

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Location: La Marina

Joined: 27 Sep 2018

Posted: Wed Aug 4, 2021 11:43pm

If you sell your property anytime before your residency application you will pay no CGT. 

There is a specific time allowed to sell following application and acceptance of residency, a call to a good Spanish tax adviser will give you the exact times allowed.

The fact you have owned a property here makes no difference to your CGT obligations, as you are a non resident. 

Contact a good recommended tax advisor for exact advice. 

Chris641

Posted: Thu Aug 5, 2021 12:35am

Chris641

Original Poster

Posts: 7

Location: Villamartin

Joined: 9 May 2019

Posted: Thu Aug 5, 2021 12:35am

Thanks so much everyone for your help, you have all been very helpful and I feel much happier after your replies

mandy59

Posted: Wed Sep 22, 2021 8:21pm

Posts: 7

Location: San Luis

Joined: 15 Jun 2021

Posted: Wed Sep 22, 2021 8:21pm

We are selling our house in uk at end of jan 2022 and during the year will apply for residency. We will be leaving the money from our house sale in uk for at least 1 year…would we have to capital gains tax on the house sale in uk

Kelvin1960

Posted: Thu Sep 23, 2021 8:11pm

Kelvin1960

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Posted: Thu Sep 23, 2021 8:11pm

mandy59 wrote on Wed Sep 22, 2021 8:21pm:

We are selling our house in uk at end of jan 2022 and during the year will apply for residency. We will be leaving the money from our house sale in uk for at least 1 year…would we have to capital gains tax on the house sale in uk

If you are granted Residency between Jan and end June '22 you will be tax-Resident in Spain as at 1/1/22. You will be liable for CGT in Spain (you will declare and reconcile tax in '23).

If you can defer your grant of Residency (TIE) until July, you won't be tax-Resident in Span until 1/1/23 (and you will reconcile in '24). In this case, you will not be liable for CGT in Spain. 

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