Moving house

hello
We have had our house in Spain now for over 3 years & been Residencial for over a year .
What we wanted to know was if we sell our house to move to a bigger one . How do we stand with tax as does being residents for longer than a year make a difference ?

If you use the money to buy another property, and it is your main home, there is no tax to pay on the sale of your home.
Although this is now the same for both residents and non-residents, it would be difficult for a non-resident to claim the new property is his main home.
However, you may be liable to plus valia tax (tax on the amount the land value has risen) and will have to pay the ITP (transfer tax) or IVA if it's a new property, on the next house. This is 10% of the cost.

You also don't have to buy your next main home in Spain, anywhere in the EU will do.

Edited to add: if you are over 65 and have been resident in the same property as your main home for more than 3 years then there would be no CGT to pay at all even if you don't invest in a new property.

Thank you marcliff for your help with this

weve sold up completely in Uk and are technically homeless until we use 2/3rds of the sale cash to buy a house here next week. By the end of the tax year we will have been here less than 183 days, and we intend to apply for Nei, padron and residencia soon as we can (before march nect year). I dont believe we pay any tax on the outstanding balance, which we will live off very nicely....

richardlionheart wrote:weve sold up completely in Uk and are technically homeless until we use 2/3rds of the sale cash to buy a house here next week. By the end of the tax year we will have been here less than 183 days, and we intend to apply for Nei, padron and residencia soon as we can (before march nect year). I dont believe we pay any tax on the outstanding balance, which we will live off very nicely....

Partly correct - you won't have to pay Spanish income tax on your capital sum, but you will have to pay a pro-rata amount of Non-Resident tax, based on the value of the property you're buying.

Unless you have a good command of Spanish and are used to doing your own tax returns, the cheapest way to submit your Non-Resident tax is using:

http://spanishtaxforms.co.uk/

richardlionheart wrote:weve sold up completely in Uk and are technically homeless until we use 2/3rds of the sale cash to buy a house here next week. By the end of the tax year we will have been here less than 183 days, and we intend to apply for Nei, padron and residencia soon as we can (before march nect year). I dont believe we pay any tax on the outstanding balance, which we will live off very nicely....

Hopefully you'll cheer up a bit now then. LOL.