Re: Moving to Spain
 

Once you are notified about the success of Step 1, you only have a month in which to make an appointment at national police station and request the card.

Re: Moving to Spain
 

Thank you Joppa... another fact added to my Fact Chart.
So come Dec Imagine I am now a Resident, We will be rent for 6 months what would stop me going over to UK for 2/3 months to sell our home?
Regards
Keith.

Re: Moving to Spain
 

Once you become a resident, you can stay away from Spain for up to 6 months each calendar year to retain residency.

Re: Moving to Spain
 

Chhers Joppa,
Did you see my post on CGT for over 65s?
Any thoughts?
Regards
Keith.

Re: Moving to Spain
 

If you return to uk to sell house you will then need to declare the sale in Spain which means CGT as you will have registered as a spanish resident using a Spanish address. The Spanish address becomes your primary residence your house secondary so you cant escape CGT I am afraid.

Re: Moving to Spain
 

justc one thing to take into account , once you clear phase 1 and they say you can go to National Police you must do that within 1 month! Just in case you were not aware of that rule .

Re: Moving to Spain
 

OH...Grrrrrrrr!
Even if I am renting till I sell house in UK?

Re: Moving to Spain
 

Problem is that when you register you are saying you have settled in spain and live there permanently. The address you rent from will go on your TIE/ driving licence etc. Once you say you are living there all your income etc and sales of assests is tax in spain. Your house sale will not be your primary residence as you have declared that to be in spain. Plus spanish tax year is Jan to Dec so you cant even use the 181 day rule that some people try and use.

Re: Moving to Spain
 

Dam.... no options left!

Re: Moving to Spain
 

Not necessarily. I am not a tax lawyer and maybe someone has a different take on this. It could be that if you sell the property and buy another in the same year there is no CGT. Talk to a good lawyer who ideally understands both uk and spanish laws and wait for someone else to come on here to give their opinion

Re: Moving to Spain
 

Hi Chipmonk,
Cheers for the answers.
If was to sell the UK home and I was lucky to receive the asking price,
I calculated the CGT ........Oh dear!
£300,000 would shrink to a mere £231,120!
As you point out I will see if others have any way forward.
Regards
Keith.

Re: Moving to Spain
 

In all reality you could register before December31. Return to uk and sell house. Buy house with proceeds in spain all before end of the spanish tax year. You wouldn't be submitting your modelo 720 till the next year so you would no longer have the uk property as an overseas asset. Maybe doing all this in a year is in fact a way of avoiding CGT.

Re: Moving to Spain
 

Here everything is listed: So it seems the best option is to sell/buy before you become resident in Spain.
https://www.citizensadvice.org.es/fa...ng-a-property/
If it is your habitual residence (for at least 3 years) and you are over 65 there is no capital gains to pay. Note: if you move to Spain and set up your habitual residency here, in a rented or purchased property, your UK property will no longer be considered your habitual residence (even though you might have lived there for many years) and thus does not meet the requisite for exemption of Capital Gains when you eventually sell it.

If you are over 65 but haven´t lived in the property for the minimum of 3 years before selling, you can normally claim relief for professional and legal fees and taxes for both the purchase and sale. So these would include agent fees, notary, lawyer etc. plus transfer tax on purchase, and plus valia if paid. In addition you can claim for improvements, so additions to the property rather than maintenance. However in respect of all claims for relief you will need invoices to support your claim, and these must include IVA where applicable. In addition, in respect of invoices for the last 5 years you need evidence of payment through the bank where the invoice exceeds the limit for cash payments ( 2.500 euros).

If you are under 65, and you bought the property after the 1st January 1994, then there are no allowances unless you are reinvesting the proceeds in another main home, and even then it’s complicated if you are not reinvesting the total sale proceeds. If you bought the property before the 1st Janaury 1994, then you may qualify for relief on the gain made between the 1st Janaury 1994 and 1st January 2006, providing the sale price does not exceed €400,000.

In terms of reinvestment the rules are, that providing the property is your main residence, and you have lived there for over 3 years, then you qualify for reinvestment relief. The reinvestment can be 2 years before or after the date of the sale, and includes purchase in an EU member state. To receive full relief the total amount of the net proceeds received must be reinvested. NB if you purchase a new property before selling your old one, then you can only claim the reinvestment relief by repaying a mortgage raised to purchase the new property.
Note re COVID-19 and the suspension of administrative deadlines. The Tax Office has confirmed that the 2 years as mentioned above, is suspended for the duration of the State of Alarm in 2020.

So, if you receive a net €150k (and the capital gain is €100k) and you reinvest €150k, you receive full relief and no capital gains to pay. However if you reinvest only €100k, that is only 66.66% reinvestment, so capital gains is due on 33.33%, so taxed on €33,333 (tax of circa €7k).

You must report the sale on your tax return for the year of sale, and claim relief at the time of reporting.

Re: Moving to Spain
 

So presumably if you have 2 years from sale to invest in a Spanish property that means that you can be living for 2 years in another property that wont count as primary residence? That would definitely help the poster. However...after Brexit the uk is no longer a EU partner and I fear that then the reinvestment law might not apply

Re: Moving to Spain
 

To be 100% sure, you would probably have to sell the UK property this year and become resident/reinvest in Spain before Brexit.