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.

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