Last week a man called from Hong Kong who is selling his house in the Malaga province with capital gains and he had a specific question abour reinvestment of the gain.
I had blogged an article on this website about capital gains tax in December that had answered this and he wanted to check it.
He asked me to send him something in Spanish that backed up what I had written, so I sent him the actual Boletin (Law).
This is what he first replied:
“It took a bit of trawling … but I think this is the bit that your blog post referred to that both spanish property insight and Blevins Franks got wrong!
And both are well considered in the Industry!
from Page 6 of the BOE:
En tercer lugar, y también para favorecer la libre circulación de los ciudadanos dentro
de la Unión Europea, se permite al contribuyente no residente que quede excluida de
gravamen la ganancia patrimonial que obtenga con motivo de la transmisión de la que
haya sido su vivienda habitual en territorio español, siempre que el importe obtenido en la transmisión se reinvierta en la adquisición de una nueva vivienda habitual.
Thanks for your help again Amanda!”
Then last night he wrote a thank you,:
“Thanks so much for your help today! I was getting more than a bit frustrated with hearing a different answer from everybody I asked and everything I read about
my tricky Capital Gains Tax situation. Including some big hitters in the expat tax world.
You were so friendly, and went right out of your way to help me find the official information I needed to back up what it said on one of your blog posts.
You guys were right, and could prove it! I can’t tell you what a relief it is just to know what the rules are that apply to my situation.
I have some big decisions to make, and at least I now know what the implications really are. What I can’t believe though is that you didn’t even charge me!”
He made my day, as this little firm stood out again in the world of the big hitters on the internet!!
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2 Comments
mick watson
Hi. We sold our property in the UK in february 2020 and flew out to Spain early march with the view to getting residencia as we have had an apartment in San Pedro del Pinatar for 14 years. However we have been told that applying for residencia the same year as selling up in the UK will mean we will have to pay CGT in Spain which would pretty much take away our profit which we were using to live on until we start to recieve a UK pension. Is this the case or is there a way around this as we were hopeing to get residencia before Brexit. We were looking at buying a villa and selling the apartment but are now in limbo. Any advice would be appreciated.