Rolocation, Relocation, Relocation.....
Oct 29th 2007, 7:46 am
#1
Ex Expat
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Location: West Midlands, ex Granada province
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Rolocation, Relocation, Relocation.....
I understand that if you sell a property and re-invest the profits in another one within six months, CGT is not payable.
Is this a) correct and b) applicable over all of Spain or just Andalucia?
Thanks!
Is this a) correct and b) applicable over all of Spain or just Andalucia?
Thanks!
Oct 29th 2007, 8:58 am
#2
Lost in BE Cyberspace
Joined: Jun 2005
Location: Puente Esuri
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Re: Rolocation, Relocation, Relocation.....
Only to tax registered Spanish residents but you have more time than 6mths
Oct 29th 2007, 11:10 am
#3
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Oct 29th 2007, 7:45 pm
#4
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Re: Rolocation, Relocation, Relocation.....
Another similar question: if a resident sells a property when they are over 65 they do not have to pay CGT.
If a property is jointly owned by husband and wife, do they both have to be over 65?
If a property is jointly owned by husband and wife, do they both have to be over 65?
Oct 29th 2007, 10:40 pm
#5
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Joined: Mar 2006
Location: Sevilla/Cordoba border
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Re: Rolocation, Relocation, Relocation.....
The over 65 would be exempt, the under 65 would not be and would have to pay CGT on their share.
Also, the property in question has to be your main residence and you have to have owned it for 3 years I believe. I´m sure someone else can confirm or otherwise.
Also, the property in question has to be your main residence and you have to have owned it for 3 years I believe. I´m sure someone else can confirm or otherwise.
Oct 29th 2007, 11:15 pm
#6
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Re: Rolocation, Relocation, Relocation.....
Thank you Hillybilly. All those things will apply if/when we sell up.
Jus trying to find legal ways not to have to pay the tax!
Jus trying to find legal ways not to have to pay the tax!
Oct 29th 2007, 11:19 pm
#7
Joined: Jun 2006
Location: Granada Costa
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Re: Rolocation, Relocation, Relocation.....
That is correct Hillybilly.
There are some exemptions from the 3 year rules such as moving to a new job, divorce or separation, death etc.
A guy I know moved to a new house and found that he was allergic to the pollen in that area. He had to move before the 3 years was up but a doctor's letter was accepted and he didn't pay the CGT.
As has already been mentioned, these exemptions from CGT only apply to tax residents - merely being in posession of a residents card or certificate is not enough. You have to be paying Spanish income tax or have a certificate of tax residency from Hacienda.
This is one reason to make sure you submit a tax declaration even if your income is insufficient to have to pay any tax. In fact from this year you have to make a declaration unless your income is less than 1000 euros unless you are working and paying PAYE.
There are some exemptions from the 3 year rules such as moving to a new job, divorce or separation, death etc.
A guy I know moved to a new house and found that he was allergic to the pollen in that area. He had to move before the 3 years was up but a doctor's letter was accepted and he didn't pay the CGT.
As has already been mentioned, these exemptions from CGT only apply to tax residents - merely being in posession of a residents card or certificate is not enough. You have to be paying Spanish income tax or have a certificate of tax residency from Hacienda.
This is one reason to make sure you submit a tax declaration even if your income is insufficient to have to pay any tax. In fact from this year you have to make a declaration unless your income is less than 1000 euros unless you are working and paying PAYE.
Oct 30th 2007, 6:38 pm
#8
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Joined: Apr 2005
Location: La Saucedilla, Chiclana
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Re: Rolocation, Relocation, Relocation.....
That is correct Hillybilly.
There are some exemptions from the 3 year rules such as moving to a new job, divorce or separation, death etc.
A guy I know moved to a new house and found that he was allergic to the pollen in that area. He had to move before the 3 years was up but a doctor's letter was accepted and he didn't pay the CGT.
As has already been mentioned, these exemptions from CGT only apply to tax residents - merely being in posession of a residents card or certificate is not enough. You have to be paying Spanish income tax or have a certificate of tax residency from Hacienda.
This is one reason to make sure you submit a tax declaration even if your income is insufficient to have to pay any tax. In fact from this year you have to make a declaration unless your income is less than 1000 euros unless you are working and paying PAYE.
There are some exemptions from the 3 year rules such as moving to a new job, divorce or separation, death etc.
A guy I know moved to a new house and found that he was allergic to the pollen in that area. He had to move before the 3 years was up but a doctor's letter was accepted and he didn't pay the CGT.
As has already been mentioned, these exemptions from CGT only apply to tax residents - merely being in posession of a residents card or certificate is not enough. You have to be paying Spanish income tax or have a certificate of tax residency from Hacienda.
This is one reason to make sure you submit a tax declaration even if your income is insufficient to have to pay any tax. In fact from this year you have to make a declaration unless your income is less than 1000 euros unless you are working and paying PAYE.
What about UK Government pensions, do you have to make a return when you receive them or are they exempt?
JJ
Oct 30th 2007, 6:47 pm
#9
Joined: Jun 2006
Location: Granada Costa
Posts: 10,904
Re: Rolocation, Relocation, Relocation.....
Yes they are exempt, however if you also get a UK state pension (or any other income), that will have to be declared although you will probably not have to pay any tax on a basic UK pension as the Spanish personal allowances are now much higher than they used to be.
