lurchio

Hi All,


Getting some conflicting 'views' on CGT regarding moving home, so asking if anybody has 'been there':


Looking at the guidance, I have encountered confusing 'advice' from tax advisers on one of the aspects:


1. We are under 65 years of age
2. We own a house in Spain, and are looking to move within Spain.
3. The entire proceeds of our Sale will be going into the purchase of the new Home (plus a bit more cash!). (so, no 'gain' there)
4. We have Certificates of tax residency in Spain dated 6.2.2016 and consequently did a tax return for the fiscal year 2015 in June 2016.
5. We have lived here 'as a habitual residence' since 5.1.2015, and were on the Foreigners register (aka residency) by April 2015.


In order to be exempt CGT in the above circumstances, we satisfy the criteria with one BIG question. When does the 'clock start ticking' for the three years 'habitual residency' bit?


Date of Signing on the Register (+90 days aka ordinary 'residency') OR
Date of the Fiscal Resident Certificate 6.2.2016 OR
1st. January 2015 as we submitted a tax return for 2015 when we became Fiscal residents in 2016.


My point is that Hacienda will only allow matters when they are themselves aware of how long you have been here FISCALLY.


I say its 6.2.2016, conflicting professional 'advice' includes the other two answers. Anybody been there please? (I hate it when some 'professionals' are plainly making it up as they go along, pet hate)

Loafing Along

You say you have submitted a tax return for 2015 but what about subsequent years ? For Hacienda and "habitual residency" they will want to see continuity of three years. I assume you have also made a declaration for 2016 and will make one for 2017 . If so you can go to the Hacienda website and confirm your status by downloading the copies of past certificates.
https://www.agenciatributaria.gob.es...ion/G305.shtml

Whatever happens you need to declare the sale and at the same time confirm in your declaration that you intend to take advantage of the fiscal benefit for "reinvestment"

lurchio

Yep, 2016 is done, and 2017 will be done. I am aware about the declaration etc. But when does the clock start for the habitual residency thing?

Loafing Along

Been thinking this over . There are three criteria for fiscal residence :

1. More than 183 in any one year
2. Economic interest - in your case could be considered to be your property
3. Personal Interest - Having your wife and family, economically dependent, living with you in the property in Spain.

Other factors may come into play but these are three key ones. So if you arrived in January 2015 and cannot prove any exit/entries after that date, your fiscal residency should have come into effect 184 days afterwards.

lurchio

My personal feeling is there are too many 'if's' and buts about 2015, and we could be talking a 23% tax on any profit 'if or but' here. Safe waters for me is to start counting from 6.2.2016, but my Advisor says no, go from 2015. Its okay for her................

Fred James

If you meet the fiscal residency test at any time during the year you are deemed tax resident for the whole of the tax year, so I would assume that it is Jan 1st in that year.