Talk Quesada forum

Hi Everyone,
We have decided to sell up and move into our Spanish property,
We’re wondering if we have to pay capital gains tax on this property? ( payable to the Spanish tax man?)we will make a profit of approximately 30k on this property since we bought it.
I think it was mentioned on this forum a while back( can’t find the info now)that a lot depends on what time of the year we move out,
Any information would be great help

Thanks
Mac

It was me who asked the question. If you're still tax resident in the UK and it's your main home then you won't pay taxes - as long as you sell before you change your residency.

My question was whether I would pay capital gains tax if I was resident in Spain and sold what would be my main home.

Yes make sure you time your UK move to make sure you don't fall within the 183 days in Spain after the UK sale.Explanation and worked example here

https://upsticks.es/the-spanish-capital-gains-tax-trap/

If you are over 65 and a Resident in Spain for 3 years then you won't pay CGT on the sale of your property. So it would make sense to time your move from the UK to make sure it is tax efficient and to not sell your property in Spain if you are over 65yrs until you have lived in the property as Residents for 3 years.

Your €30K would carry a 19% Spanish tax bill if you don't satisfy the above regs. So you will have to decide if the €5700 tax bill is liveable with.

If you are under 65 these are the regs

If you are tax resident in Spain, selling your home that you have lived in for at least the last three years and reinvest all the profit in your next home (in Spain or the EEA). You must reinvest the profit within two years of selling the property.
Did you know? You are only Spanish tax resident if you are registered with the Spanish Tax Authorities.

Bee

The first question is, are you still a non resident? If so you have to do the whole process of I think it's called applying for a NLV to gain residency in Spain. If you are planning this it would be best to speak to a professional advisor to help you navigate the process.

The profit due for CGT on the sale of a UK home if tax resident in Spain.
The purchase price plus legal fees etc multiplied by the euro/pound exchange rate for the year of purchase.
The sale price less legal/estate agents fees etc multiplied by the exchange rate for the year of sale. The difference is the CGT due.