1st time declaring tax and capital gains tax excemption rules

Hello,

A few questions if I may...

If a British “resident” (ie, lived in Spain for more than 183 days per year with a NIE card) who has lived and owned a property in Spain since 2002 declares at the tax office for the first time (in order to get a tax certificate so they would be capital gains excempt when they sell their main residence property and reinvest all the proceeds within 2 years into another property), would they be....

1) liable for just the previous year (e.g. 2009)
2) liablie for the past 5 years as this is their first time declaring
3) are there any additional taxes apart from the local tax (IBI) and refuse tax (basura) that could be owed?
4) when at the notary at the point of sale, will the notary ask the seller for just his NIE card/certificate or a tax certificate as well?
5) Will just one delcaration at the tax office be sufficient enough to be classed as a "fiscal resident" in order to be elegible for capital gains rollover (if all sale money reinvested) or is it 3 years?

Any responses much appreciated. Thanks.

Dear Sir or Madam,

Your query is very similar to this other one, you may want to read it carefully.-

http://www.marbella-lawyers.com/foru...ead.php?t=1111

First of all if you have been living here since 2002 you are clearly a fiscal resident. I doubt the Spanish Tax office will allow you to take advantage of the CGT roll-over relief I'm afraid.

1) liable for just the previous year (e.g. 2009)

Maybe, depnds what the tax offoce considers. If you explain to them you've been living here since 2002 they will claim the last 4 years in back taxes, plus penalties, plus delay interests, of course.

2) liablie for the past 5 years as this is their first time declaring

See above.

3) are there any additional taxes apart from the local tax (IBI) and refuse tax (basura) that could be owed?

Wealth tax, Imputed Income Tax on your property.

4) when at the notary at the point of sale, will the notary ask the seller for just his NIE card/certificate or a tax certificate as well?

They will ask for both, yes.

5) Will just one delcaration at the tax office be sufficient enough to be classed as a "fiscal resident" in order to be elegible for capital gains rollover (if all sale money reinvested) or is it 3 years?

As written above I don't think they are going to make it easy on you.

If you are trying to waive the retention of 3% on selling you're in for a rough ride. The tax man is going to be very interested in why you haven't declared your status of fiscal residency in Spain.

Perhaps you are simply better off writing off the 3% than being required to pay the last 4 years of back taxes plus extras. I would strongly suggest you look into this option and calculate professionally if it's worthwhile for you or not to follow this option.

Yours faithfully,

Thanks for your fast response. 1) Who would be the correct person to speak to about calculating and deciding which option is best for me (and the cheapest), a gestoria, asesoria? 2) How much (more or less) should I have to pay for this service and 3) would they know and be able to calculate as if they were the taxmen themselves, eg the calculations they give me are spot-on (100% correct)?

Many thanks

Dear Madam,

You're welcome.

I would say a fiscal adviser would be the most appropriate option.

I would certainly hope that thier calculations would be accurate.

You would have to shop around for a competitive fee's quote.

Yours faithfully,

Great. Will get on to it this week. Once again, thanks for your helpful advice.

You're welcome.