Tax Rebate

[CherieB]

Got this from my insurer...hope it helps someone ...wish it was me...


Great News

If you sold a property in Spain between 1997 - 2006 You May Entitled To a Spanish Capital Gains Tax Rebate

Between 1997 and the end of 2006, UK citizens paid 35% Capital Gains Tax (CGT) when selling their property, whilst Spanish nationals only paid 15%.

The ECJ ruling has confirmed legal arguments and states that this overpayment contravenes European Community Treaty discrimination rules and should not have been charged by the Spanish Tax Authorities.

Therefore, if you meet the requirements, you are entitled to reclaim this overpayment, plus approx 6 % interest annually from the moment you present your claim (estimated average to reclaim: 15,000 €).

The ECJ ruling means that as many as 90,000 people could now make a claim.

Claims must be registered within 12 months of the ruling, so make sure you don’t MISS OUT!

[Dunedin]

They need to hurry if you only have 12 months, as it must be that long since it was announced. If I remember correctly you get back 17% which I believe is wrong, as it was charged at 35% whereas the Spanish only paid 8% at that time and was ruled that all should pay the same. It was after the EC ruling that it was changed to 18% for all, so you should get 27% back if you paid before then.

[albert]

Great News and a fair decision. Will there be a problem financing this payback. Can Spain afford it ?

[popeyeandginger]

Most non residents never paid that 35% anyway. If you sold and bought another property within 2 years, you could roll over. If you sold and took the money out of teh country, theycharged you 5% witholding tax at the point of sale, deducted by the notary. In theory you still owe them the rest.....
The Spaniards were really pi**d at that though.... as that fair, nay cynical, decision was used to jack up the rate they paid - and far more houses are bought and sold by spaniards and residents than non residents.
Doesn't matter anyway if you are resident and over 65 - there is no Capital Gains tax on your primary residence