CGT refund for Brits in Spain
British subjects who have bought and sold property in Spain could be eligible for a tax refund.
Under Spanish taxation legislation applicable at the time, foreign owners who had been in possession of their property for more than a year who then sold up were obliged to pay 35% on any capital gain they had made, compared to just 15% levied on Spanish sellers.
What’s more, Spanish property owners only paid the 15% over a set threshold, while British owners were charged 35% on the entire gain.
The European Court of Justice has now ruled that the Spanish authorities discriminated against non-nationals.
Spanish lawyers, Costa, Alvarez, Manglano & Associates, which is representing a group of British non-residents who sold their property between June 2004 and December 2006 estimates that each person is owed an average of £19,300.
However, non-resident property owners who sold up more than four years ago may have already missed the boat, as claims for Spanish tax refunds have a time limit applied.
