Holden Associates – Accountants & Business Advisers Blog

Are you one of the thousands of British property owners who made a capital gain on a property you sold in Spain?

The rules changed last year, but before this change many who sold their Spanish homes/property could have paid tax at a whopping 35% tax rate, compared to the Spanish flat tax rate of 15%.

According to Spanish lawyers Costa, Alvarez Manglano & Associates this increased tax on foreign non-residents is in contravention of the European Community Treaty.

I have provided a link to their site, but to know if you qualify they have provided a bullet point guide:

Do you qualify?

To make a claim you must meet the following criteria:

You sold a Spanish property between May 2004 and December 31st 2006.
You were NOT a fiscal resident in Spain when you sold it.
You paid the Capital Gain Tax to the Spanish Authorities.
You sold your Spanish property as an individual; not as a company.
You have, or can obtain, a copy of the Spanish Tax Form “Modelo 212” you completed when you sold the property.

So if you think you may be affected act now, after all the Spanish authority could be holding money that is yours!