Spanish Capital Gains Tax Reclaim

Spain has been a nation that we first started flocking to within the 1970’s. The package deal vacation produced locations such as the Costa del Sol an affordable vacation for millions.

Ever since then things have changed immensely and there are generally 1000s of British people that presently or have previously owned property in Southern spain. The attractions of a house in the Mediterranean have been shown to be a winner here in the united kingdom.

It now appears as if Spanish real estate investors could be entitles to a reimbursement of their Spanish Capital Gains tax. What this means is if any of you sold a Spanish residence between January 1st 1997 and December 31st 2006 you may get a refund

How’s this achievable?

A recent judgment by the European Court of Justice (ECJ) proved that that non-Spanish residents were unfairly charged 35% in Capital Gains Tax in comparison to 15% charged to local Spanish residents. Consequently it is now possible to submit a claim to get the 20% difference back through the Spanish Tax authorities.

It’s been estimated the homeowners that sold since 1997 may be due an average £13,500 tax reimbursement. Because of this, former Spain property owners might be eligible to claim a refund for lost interest at a charge of 6% from the date the tax reclaim is presented, making it possible for the entire reclaim to be even larger.

Commenting on the subject, Eduardo Fernandez Martinez, specialist within the Spanish Property Tax industry had this to state, “This is breaking news to the non-resident taxpayer. The Spanish Tax Authorities are already overloaded with claims since the ruling of the ECJ. The result that it had been both discriminatory and unfair to charge a greater tax percentage is both deserved and overdue. Non-residents will now get what is indebted to them for investing within Spain for many years.”

How do i know if I qualify?

The actual qualification procedure is simple.

- You sold your Spanish property between January 1st 1997 and December 31st 2006.

- While you sold your property you were not a Spanish Resident

- You have a copy of the purchase and sale deeds of your property

- You will have the Spanish Tax form Modelo 211 and / or Modelo 212