For any non-resident Spanish property owner, the article below may be of serious interest as it appears that, at the least, all EU residents will be able to take advantage of all the tax breaks that are currently available to Spanish tax residents in the cases of property inheritance. This may even have a retro-active benefit for anyone who has inherited a property since 2006.
Regards
Andrew
I have just read an interesting article by ELS (legal firm based in Fuengirola) discussing how the changes in Spain’s capital gains tax law might allow EU vendors to reclaim part of the 35% they (unjustly) paid to the Spanish government. I wrote about this tax rebate, earlier in the year, but ELS have written a far more detailed and explanatory explanation.
More..
According to Spanish law, if you sold your property after November 2004 and prior to 2007 you may be entitled to a tax rebate on the capital tax you had to pay.
To say that tax planning for a British expatriate in Spain is complex is a huge understatement! Encouragingly many clients I have met have tried to take the proverbial bull by the horns and are legitimate tax paying Spanish residents though there are many more that have fallen foul of the often misunderstood world of offshore investing!
