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Selling a UK Property which becomes subject to Spanish Tax

Selling a UK Property which becomes subject to Spanish Tax

Old Mar 23rd 2024, 4:07 pm
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Default Selling a UK Property which becomes subject to Spanish Tax

I have been told that if we sell our UK property after we have been in Spain more than 183 days we will be subject to declaring the funds to the Spanish Tax Authorities. If this happens what is the rate of tax you have to pay ? We want to put it on the market but have been told by the estate agent it could take up to 8 months before it is all sold and signed for so would become subject to Spanish Tax. We have not yet received our Visas but only applied for them just over a week ago.

Anyone any experience of this happening to them ?
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Old Mar 23rd 2024, 4:24 pm
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Default Re: Selling a UK Property which becomes subject to Spanish Tax

If it sells while you are tax resident you would be liable to CGT. However, assuming it was your habitual residence and you reinvest the proceeds in another property (in full) it would be exempt. If you are over 65 and resident it would also be exempt.
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Old Mar 23rd 2024, 4:26 pm
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Default Re: Selling a UK Property which becomes subject to Spanish Tax

Originally Posted by Fred James
If it sells while you are tax resident you would be liable to CGT. However, assuming it was your habitual residence and you reinvest the proceeds in another property (in full) it would be exempt. If you are over 65 and resident it would also be exempt.
Well we are in our 70's so I presume that that means we would not be liable for tax in Spain if it sells say after a year, as we are planning to reinvest in a Spanish property also.
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Old Mar 23rd 2024, 4:56 pm
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Default Re: Selling a UK Property which becomes subject to Spanish Tax

The UK property must have been your home for at least 3 years and you have two years to sell it from the date you moved out. If you had to pay CGT the rates are on a sliding scale from 19% to 26%.
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Old Mar 23rd 2024, 5:19 pm
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Default Re: Selling a UK Property which becomes subject to Spanish Tax

Originally Posted by Fred James
The UK property must have been your home for at least 3 years and you have two years to sell it from the date you moved out. If you had to pay CGT the rates are on a sliding scale from 19% to 26%.
Thanks for the info. I am hoping it won't take 2 yrs to sell it, it is a bungalow and they sell quite well round by where we live.
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