Taxes when Selling Spanish Property

[lawbird]

Dear Elaine,

Thank you for your email. When you sold the property you were most likely retained 3% of the purchase price to deal with your CGT. As you sold at an undervalue, you had no gain, and therefore you are not liable to pay CGT. Please note that CGT is different to plusvalia tax which is not calculated with reference to your real gain but on your presumed gain (as per specific tables held by the townhall).

As a result of the above you may be entitled to a refund from the Spanish HMRC. We need to review the documentation carefully in order to confirm.

If you forward us the title deed to info @ lawbird.com, I could provide you with more information on how to apply for a refund and the cost of such.

As per your last question, to qualify for the reinvestment exemption, you need to reinvest within two years of the sale and within Spanish territory. However, and as I said earlier, you may not be liable to pay CGT and therefore you do not need to seek any exemptions in order to reduce your CGT liability. You had no gain.

Hope the above information is of assistance and please do not hesitate to contact us could we be of any help.

Kind regards,