Capital gains exemption when selling Spanish property

[Unregistered]

sorry I have move the "reply" above to a new thread .

[Jonathan James]

1- I am 65
2- Have lived in house for 4 years
3- Have NIE, Padron, Residencia

My solicitor told me not to become tax resident . I receive above 12,000 sterlng per year in pensions ( state and private.)

I want to sell my house. If I am not a fiscal tax resident surely I will have to pay capital gain on any potential profit.

I am worried. HELP PLEASE

Kind regards
Jonathan

[Lawbird Lawyer]

Dear Sir,

You're right, you'll have to pay CGT on selling despite fullfilling all the requiremenst to be exempt of it.

Perhaps your lawyer thought it best not to become tax resident so your pension remained untaxed in Spain. UK pensions are taxed in Spain btw.

Yours faithfully,
Raymundo LarraÃ*n Nesbitt

[Cheryl Kennedy]

I was told that because I get less than 8,000 € pension there was no need to submit a tax declaration even though I am resident and over 65 years. I am concerned now because I too will be selling and buying a smaller house.
Do I get roll over to next house and do I pay capital gain

[Lawbird Lawyer]

Dear Miss Kennedy,

You were told right. Unfortunately in life one can't have everything as choices imply constinued tradeoffs. In your case filing for an annual tax return does NOT imply you would have paid said tax!

If you have not been submitting your annual tax returns for the last three years on your main residence you will not qualify for a CGT exemption which is only applied to residents.

You are confusing two things:

1. Owners > 65 y.o. qualify for a total CGT exemption as explained above.
2. Owners < 65 y.o. may qualify, subject to certain criteria, to a roll-over relief if they re-invest the sales proceeds within the next two years in another main residence whether in Spain or abroad.

Your case would be number one. Regrettably as you have not been filing your annual tax returns you will most likely be rejected by your Tax office.

Your faithfully,
Raymundo LarraÃ*n Nesbitt