FURTHER ADVICE NEEDED/ CAPITAL GAINS TAX
Mar 1st 2017, 10:11 am
#1
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FURTHER ADVICE NEEDED/ CAPITAL GAINS TAX
Hi,
I have had some positive conversations with few agents in Spain about long term rentals. As I expected it will be easier if I go over no later than May, or leave it until Oct.
If I go over earlier then my husband will be organizing selling the house with a view to selling by Sept/Oct. This would be the ideal but I am worried that if it takes longer to sell then I will go past the time, around 6 months I believe, when I will not have to pay CGT on the sale of our UK property.
Is this correct, If I rent for more than 6 months before we manage to sell in the UK we will have to pay CGT to Spain?
I have had some positive conversations with few agents in Spain about long term rentals. As I expected it will be easier if I go over no later than May, or leave it until Oct.
If I go over earlier then my husband will be organizing selling the house with a view to selling by Sept/Oct. This would be the ideal but I am worried that if it takes longer to sell then I will go past the time, around 6 months I believe, when I will not have to pay CGT on the sale of our UK property.
Is this correct, If I rent for more than 6 months before we manage to sell in the UK we will have to pay CGT to Spain?
Mar 1st 2017, 10:24 am
#2
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Re: FURTHER ADVICE NEEDED/ CAPITAL GAINS TAX
Mar 1st 2017, 12:19 pm
#3
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Re: FURTHER ADVICE NEEDED/ CAPITAL GAINS TAX
Thanks Rosemary, I guess there is no way around it. I really want to get over there ASAP but if our UK house has to be sold within 6 months of me being there I will just have to put up with the cold and the rain for a bit longer.
Mar 1st 2017, 12:35 pm
#4
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Joined: Feb 2008
Posts: 5,622
Re: FURTHER ADVICE NEEDED/ CAPITAL GAINS TAX
Hi,
I have had some positive conversations with few agents in Spain about long term rentals. As I expected it will be easier if I go over no later than May, or leave it until Oct.
If I go over earlier then my husband will be organizing selling the house with a view to selling by Sept/Oct. This would be the ideal but I am worried that if it takes longer to sell then I will go past the time, around 6 months I believe, when I will not have to pay CGT on the sale of our UK property.
Is this correct, If I rent for more than 6 months before we manage to sell in the UK we will have to pay CGT to Spain?
I have had some positive conversations with few agents in Spain about long term rentals. As I expected it will be easier if I go over no later than May, or leave it until Oct.
If I go over earlier then my husband will be organizing selling the house with a view to selling by Sept/Oct. This would be the ideal but I am worried that if it takes longer to sell then I will go past the time, around 6 months I believe, when I will not have to pay CGT on the sale of our UK property.
Is this correct, If I rent for more than 6 months before we manage to sell in the UK we will have to pay CGT to Spain?
Mar 1st 2017, 2:52 pm
#5
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: FURTHER ADVICE NEEDED/ CAPITAL GAINS TAX
In Spain, you are tax resident for the whole of the tax year during which you become tax resident, so in this case you would be tax resident from the 1st January, so the house must be sold before that date.
The UK allows split tax years, but Spain does not.
The UK allows split tax years, but Spain does not.
Mar 1st 2017, 3:05 pm
#6
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Re: FURTHER ADVICE NEEDED/ CAPITAL GAINS TAX
If I go over on inspection trips before 1 July do i have to count those days towards my residency status time. I don't want to end up paying CGT for the sake of being 30 days or so over.
Mar 1st 2017, 3:09 pm
#7
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: FURTHER ADVICE NEEDED/ CAPITAL GAINS TAX
Yes, you do as the 183 days do not have to be contiguous.
No one is really checking and the tax system is a self assessment (unless they have reason to doubt your numbers). If in doubt, it's up to you to convince them that you were not in the country so keep evidence of travel, tickets etc. You are very, very unlikely to need them, but with a potentially large CGT exposure, best to be on the safe side.
No one is really checking and the tax system is a self assessment (unless they have reason to doubt your numbers). If in doubt, it's up to you to convince them that you were not in the country so keep evidence of travel, tickets etc. You are very, very unlikely to need them, but with a potentially large CGT exposure, best to be on the safe side.
Mar 2nd 2017, 8:55 am
#8
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Re: FURTHER ADVICE NEEDED/ CAPITAL GAINS TAX
Yes good point Fred
