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chozasblacknel
07-02-2010, 09:39 AM
We are spanish residents and are also fiscal tax residents and have accounts done every year.We are trying to sell the house and go back to England.We are in the process of getting a document from the accountant to stop 3% being held at the notary.
We have been told that as long as we use all the proceeds from the house to buy a house in England within 2 years this can be offset against the CGT due in Spain.Presumably we would have to produce accounts the following year with the details of the sale in,
Is this correct,if it isn't,if we just pay the 3% and return back to England,would we be pursued for any more?

Lawbird Lawyer
07-02-2010, 09:47 AM
Dear Sir,

Yes it's true. You've been well-advised.

You can benefit from this roll-over relief as long as you purchase with the sales proceeds another main residence, even in the UK, within the next two years of teh sale.

In the part part of the sales proceeds unused to buy this new main residence you will be taxed accordingly.

If you just "pay" the 3% retention it is doubtful they will pursue you abroad. That's exactly the purpose of the 3% retention practised on non-fiscal residents as CGT is paid on the following fiscal year.

Yours sincerely,
Raymundo Larraín Nesbitt

chozasblacknel
07-03-2010, 05:46 PM
Thanks for your reply.We are awaiting the certificate from the tax office so as soon as we get a buyer we dont have to pay the 3% witholding tax but how long does this certificate last for?
Our assessoria said we had to wait until this years tax accounts have been accepted by the tax office (we pay no tax because we dont earn enough) and then we would get the certificate.This will be probably be within the next 3 weeks.Would we need another one in January,even though the next accounts are not due until June.

Lawbird Lawyer
07-05-2010, 11:45 AM
Hi,

You are welcome.

Well it takes just under two weeks on average (providing you've filed your taxes and are up-to-date with them). It's no big deal.

The Notary will request to examine it and then will waive the requirement of the 3% withholding retention on account of your CGT liability.

Yours sincerely,
Raymundo Larraín Nesbitt

chozasblacknel
07-05-2010, 06:09 PM
Hi
Sorry to bother you again,but I also asked you how long the certicate lasts for.Do we need a new one if we dont sell the house before January, or does it last until we do our next accounts in June 2011?

Lawbird Lawyer
07-05-2010, 06:15 PM
Hi,

It's valid for one year.

Yours sincerely,
Raymundo Larraín Nesbitt