Law Management Blog

Just another Blog for Lawyers

Ex-pats eligible for Spanish tax refund

leave a comment »

Up to 90,000 UK ex-pats who have sold properties in Spain in the last 12 months could be eligible for substantial tax refunds, according to the Spanish authorities.

More than 700,000 Brits currently live in Spain and, following a landmark decision by the European Court of Justice, Spanish tax authorities will be forced to refund property sellers and end financial discrimination on the grounds of nationality.

The move comes after a UK couple took the Spanish Government to court in 2007, claiming that they were illegally charged more than a Spanish national would pay for Capital Gains Tax.

Under Spanish law, foreigners are taxed 35% of their property’s value if they sell after one year of ownership, whilst Spanish owners are only taxed 15%. But the European Court has ruled that Spanish authorities were exercising widespread discrimination in their tax practices.

According to Spanish tax experts, the average amount owed to UK property sellers is approximately £19,300 per person. However, those who sold their property more than four years ago will not be able to claim due to the time limited nature of Spanish tax appeals.

Advertisements

Written by Andrew Hodges

December 13, 2009 at 8:37 pm

Posted in Comment, LinkedIn

Tagged with , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: