Statute of limitations Spain
Feb 26th 2025 | 7:04 pm
#1
Thread Starter
Forum Regular
Joined: Apr 2007
Posts: 286
From: Ribble valley/Los Pacos
Statute of limitations Spain
Hi
I have read several conflicting statements regards Spains tax statute of limitations. My understanding is five full years then you are off the hook.
Do any of you tax experts know the definitive answer?
For instance my friend sold a house in Spain (as a U.K. national) in September 2019, she is constantly worried about the hacienda catching up with her with regard to CGT on the property. I have tried to reassure her that it is now out of date for them come after her.
She paid the 3% or whatever it was at the time and took the cash back to the U.K., all done through a gestor, but she always maintained another bolt hole apartment nearby.
I would love to show her on paper that she is out of the woods, and to not let this issue spoil her life.
can any of you confirm my thoughts that she is now in the clear .
regards
Al
I have read several conflicting statements regards Spains tax statute of limitations. My understanding is five full years then you are off the hook.
Do any of you tax experts know the definitive answer?
For instance my friend sold a house in Spain (as a U.K. national) in September 2019, she is constantly worried about the hacienda catching up with her with regard to CGT on the property. I have tried to reassure her that it is now out of date for them come after her.
She paid the 3% or whatever it was at the time and took the cash back to the U.K., all done through a gestor, but she always maintained another bolt hole apartment nearby.
I would love to show her on paper that she is out of the woods, and to not let this issue spoil her life.
can any of you confirm my thoughts that she is now in the clear .
regards
Al
Feb 26th 2025 | 8:22 pm
#2
BE Forum Addict
Joined: Jun 2017
Posts: 1,130
From: Alicante
Re: Statute of limitations Spain
If she was over 65 when the property was sold then no CGT would have been due although it must have been used as her principal residence for the three previous years.
https://balcellsgroup.com/capital-gains-tax/#:~:text=Capital%20gains%20tax%20in%20Spain%20over %2065%20years&text=You%20won't%20need%20to%20pay%2 0this%20tax.,to%20conduct%20any%20asset%20sale.
https://balcellsgroup.com/capital-gains-tax/#:~:text=Capital%20gains%20tax%20in%20Spain%20over %2065%20years&text=You%20won't%20need%20to%20pay%2 0this%20tax.,to%20conduct%20any%20asset%20sale.
Feb 27th 2025 | 6:29 pm
#3
Thread Starter
Forum Regular
Joined: Apr 2007
Posts: 286
From: Ribble valley/Los Pacos
Re: Statute of limitations Spain
Hi
Just for clarification she was 58 when she sold her villa, her husband had died and as Brexit was approaching she needed to decide to go cards in or not and she chose the uk.
thank you for the link which was interesting but it didn’t answer the question as to when is a person in the clear with regards to taxation, is it 4 years (but in reality 5 due to how the tax year works)?
regards
Al
Just for clarification she was 58 when she sold her villa, her husband had died and as Brexit was approaching she needed to decide to go cards in or not and she chose the uk.
thank you for the link which was interesting but it didn’t answer the question as to when is a person in the clear with regards to taxation, is it 4 years (but in reality 5 due to how the tax year works)?
regards
Al
Feb 27th 2025 | 6:44 pm
#4
Polished expat
Joined: Jul 2014
Posts: 18,683
From: Arcos de Valdevez "Onde Portugal se fez"
Re: Statute of limitations Spain
From PWC :
This four-year period may re-start for a taxpayer if the tax authorities carry out any actions or proceedings, with the formal acknowledgement of the taxpayer, to acknowledge, adjust, review, inspect, guarantee or collect all, or any part of a tax obligation, or due to actions by the taxpayer such as the filing of a new or late tax return that alters or rectifies a previous tax return or the filing of an appeal or claim regarding the tax.
Spain : Individual - Tax Administration
Statute of limitations
The statute of limitations for taxes is four years in Spain commencing from the day following the termination of the voluntary tax filing period.This four-year period may re-start for a taxpayer if the tax authorities carry out any actions or proceedings, with the formal acknowledgement of the taxpayer, to acknowledge, adjust, review, inspect, guarantee or collect all, or any part of a tax obligation, or due to actions by the taxpayer such as the filing of a new or late tax return that alters or rectifies a previous tax return or the filing of an appeal or claim regarding the tax.
