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CGT Selling UK property and moving to Spain

CGT Selling UK property and moving to Spain

Old Apr 4th 2019, 6:07 pm
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Default CGT Selling UK property and moving to Spain

I understand that if I sell my UK property and use the funds ( some of them) to invest in a property here in Spain ( to become my main residence) I would not be liable for CGT here in Spain.

I have rented it out for last 6 months as I am now based in Spain where I am renting.

Is my understanding correct?
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Old Apr 4th 2019, 6:13 pm
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Default Re: CGT Selling UK property and moving to Spain

Are you resident in Spain and domiciled there?
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Old Apr 4th 2019, 6:30 pm
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Default Re: CGT Selling UK property and moving to Spain

Hi there

I’m still a UK tax payer and not domiciled yet in Spain - hence why I want to sort out everything out and get set up properly in Spain.
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Old Apr 4th 2019, 7:53 pm
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Default Re: CGT Selling UK property and moving to Spain

The concept of tax domicile does not exist in Spain. It’s a UK thing. You are either tax resident or not.

Your best bet is to avoid becoming tax resident this year by spending less than 183 days in Spain, then if you sell it this year there will be no CGT to pay.

If if you sell it while tax resident in Spain CGT will be due but if you roll over the full amount into a new permanent home in Spain you could avoid that. However Brexit could possibly change that concession.
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Old Apr 4th 2019, 9:05 pm
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Default Re: CGT Selling UK property and moving to Spain

Originally Posted by dm1969 View Post
Hi there

I’m still a UK tax payer and not domiciled yet in Spain - hence why I want to sort out everything out and get set up properly in Spain.
Then you comply with UK tax laws. You would not pay CGT if this is your primary residence.
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Old Apr 4th 2019, 10:22 pm
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Default Re: CGT Selling UK property and moving to Spain

True, but if you become Spanish tax resident in the year you make the gain, you will pay Spanish CGT. the problem is that even though you were not tax resident on the day you sold, if you become tax resident in the same year, your tax residency is for the whole of that year. HMRC accept split tax years, Spain does not.
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Old Apr 4th 2019, 10:52 pm
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Default Re: CGT Selling UK property and moving to Spain

You only pat CGT in UK if there is a capital gain, IE if you sell at a level that is significantly higher than the level you purchased at minus all the allowances. If you purchase another property in UK or EU, if we are still a member when you buy, there would likely be no CGT to pay. The basic premise is that if there is no CGT in UK there would be no CGT in EU. Use the ready reckoner on HMRC website to see if there is any UK CGT to pay.

https://www.gov.uk/tax-sell-property/work-out-your-gain
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