News
Capital gains tax reclaims for Spanish property investors
Wednesday 25 June 2008
Spanish property investors have been keen to reclaim their capital gains tax as hundreds of Britons have realised that they were overcharged.
HiFX, the UK's premier provider of foreign exchange and cash deposit services, estimates that the average reclaim is over £19,000.
The error by the Spanish government only applies to those that sold property in Spain between June 2004 and December 2006.
Emilio Alvarez, a Spanish lawyer, explained the situation: "A change in the law at the start of 2007, which saw the standard Capital Gains Tax for non Spanish residents being brought in to line - a reduction from 35 per cent to 15 per cent, passed by largely unnoticed. As a result, thousands of people who had previously sold property in Spain are entitled to a 20 per cent rebate."
Those applying for a rebate are planning to add the interest they have missed out on at a compound rate of six per cent top their reclaims. HiFX estimates those "payouts could be on average 26 per cent larger than first thought".
According to the Global Property Guide, "transaction costs on second-hand properties are moderate [in Spain] and there are no restrictions on foreigners buying property" there.
HiFX, the UK's premier provider of foreign exchange and cash deposit services, estimates that the average reclaim is over £19,000.
The error by the Spanish government only applies to those that sold property in Spain between June 2004 and December 2006.
Emilio Alvarez, a Spanish lawyer, explained the situation: "A change in the law at the start of 2007, which saw the standard Capital Gains Tax for non Spanish residents being brought in to line - a reduction from 35 per cent to 15 per cent, passed by largely unnoticed. As a result, thousands of people who had previously sold property in Spain are entitled to a 20 per cent rebate."
Those applying for a rebate are planning to add the interest they have missed out on at a compound rate of six per cent top their reclaims. HiFX estimates those "payouts could be on average 26 per cent larger than first thought".
According to the Global Property Guide, "transaction costs on second-hand properties are moderate [in Spain] and there are no restrictions on foreigners buying property" there.
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