Wednesday, December 30, 2009

Details on Reclaiming Spanish Tax

Due to a landmark victory, UK residents who sold a property in Spain during the boom years have been told they are entitled to claim a 20% refund on tax from the Spanish tax authourities.

The European Court has ruled that the Spanish government was breaking the law when it charged 35% capital gains tax (CGT) on the sale of property by non-residents between 1997 and 2006.

The inflated rate trap was a whole 20 percentage points above the charge for Spanish citizens selling their homes - which has stood at 15% throughout the period - and contravened European Community Treaty rules.

Two years ago this two-tier system was overhauled and replaced with a single rate of 18% for both residents and non-residents.

Excerpt of an article from This is Money

For more information on proceeding with a Spanish tax reclaim please follow this link.

Photos Of the Modelo 212/211

In order to make your Spanish Tax reclaim these forms are the actual "evidence" that you have paid the tax at the 35% rate, and are therefore entitled to a refund.

Spanish Tax Reclaim

There has been some great news recently that will affect people who sold a Spanish property between 1997 and 2006. There has been a European court ruling that says the Spanish Tax Authourites have unfairly treated EU residents by the dis-parity in captial gains taxes levied.

Spanish nationals only had to pay 15%, where other EU sellers were required to make a payment of 35%. This action is seen to be disciminatory and now it is possible for the victims of this gross over charging to take action. To make a Spanish tax reclaim you must take note of the following requirements

You must not have been a fiscal Spanish resident during the sale of your property
You must be able to gain access to the documentation proving you payment (form Modelo 212)
You must have access to your title deeds and sales documentation
You must be an EU citizen

If you can comply with the above requirements then you may well be able to reclaim Spanish tax