CGT on selling house in Spain and buying in UK?
May 22nd 2015, 4:04 pm
#1
Just Joined
Thread Starter
Joined: May 2015
Posts: 2
CGT on selling house in Spain and buying in UK?
Hello!
We left Spain more than two years ago after living there for 13 years. Like many others we still haven't sold our house in Spain and are renting in the UK.
I have come across some suggestions on the internet that, as of this year, if we sell our Spanish house and spend the proceeds on a house in the UK, that we will not have to pay Capital Gains Tax in Spain. But it's not clear if this is a definite change in the law or just a suggested one! And would we have to pay CGT in the UK?
Does anybody know anything about this?
We left Spain more than two years ago after living there for 13 years. Like many others we still haven't sold our house in Spain and are renting in the UK.
I have come across some suggestions on the internet that, as of this year, if we sell our Spanish house and spend the proceeds on a house in the UK, that we will not have to pay Capital Gains Tax in Spain. But it's not clear if this is a definite change in the law or just a suggested one! And would we have to pay CGT in the UK?
Does anybody know anything about this?
May 22nd 2015, 4:24 pm
#2
Joined: Jun 2006
Location: Granada Costa
Posts: 10,901
Re: CGT on selling house in Spain and buying in UK?
That only applies if you are resident at the time of the sale and you have up to two years to reinvest the proceeds.
The law has changed in that they can no longer discriminate between residents and non residents. However, the CGT exemptions for age and reinvestment only apply to properties that are the habitual residence of the owner for at least three years. By definition, a non resident cannot have his habitual residence in Spain.
However, there is a two year window where, if it was your habitual residence up to two years ago, a non resident will get the exemption - however you have now exceeded that period.
The law has changed in that they can no longer discriminate between residents and non residents. However, the CGT exemptions for age and reinvestment only apply to properties that are the habitual residence of the owner for at least three years. By definition, a non resident cannot have his habitual residence in Spain.
However, there is a two year window where, if it was your habitual residence up to two years ago, a non resident will get the exemption - however you have now exceeded that period.
Last edited by Fred James; May 22nd 2015 at 4:27 pm.
May 22nd 2015, 6:12 pm
#3
Just Joined
Thread Starter
Joined: May 2015
Posts: 2
Re: CGT on selling house in Spain and buying in UK?
Thanks Fred!
All the articles I have seen do not mention a two year window from leaving Spain, just the requirement to have lived in the house for at least 3 years and to reinvest the proceeds in a new house within 2 years of the sale.
Do you have a link to info about the 2-year window so that I can find out more?
All the articles I have seen do not mention a two year window from leaving Spain, just the requirement to have lived in the house for at least 3 years and to reinvest the proceeds in a new house within 2 years of the sale.
Do you have a link to info about the 2-year window so that I can find out more?
May 22nd 2015, 6:27 pm
#4
Joined: Jun 2006
Location: Granada Costa
Posts: 10,901
Re: CGT on selling house in Spain and buying in UK?
I don't have a specific link, but it was detailed in the book by Blevins Franks on taxation in Spain which is a pretty reliable source.
I will see if I can find a specific link to the relevant law.
I will see if I can find a specific link to the relevant law.
Jul 11th 2015, 6:59 am
#5
Forum Regular
Joined: Dec 2011
Posts: 253
Re: CGT on selling house in Spain and buying in UK?
That only applies if you are resident at the time of the sale and you have up to two years to reinvest the proceeds.
The law has changed in that they can no longer discriminate between residents and non residents. However, the CGT exemptions for age and reinvestment only apply to properties that are the habitual residence of the owner for at least three years. By definition, a non resident cannot have his habitual residence in Spain.
However, there is a two year window where, if it was your habitual residence up to two years ago, a non resident will get the exemption - however you have now exceeded that period.
The law has changed in that they can no longer discriminate between residents and non residents. However, the CGT exemptions for age and reinvestment only apply to properties that are the habitual residence of the owner for at least three years. By definition, a non resident cannot have his habitual residence in Spain.
However, there is a two year window where, if it was your habitual residence up to two years ago, a non resident will get the exemption - however you have now exceeded that period.
