property exchange

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19 Jun 2007 12:00 AM by kgowri Star rating. 7 forum posts Send private message

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Until recently it was the case that foreign buyers of Spanish property had to pay 35 per cent tax on the gains they made when they sold their Spanish homes - more than domestic buyers... but no more!

As from 1st January, capital gains tax (CGT) legislation was altered and now non-resident foreign property owners will pay less tax on the disposal of their property asset.

A case that was taken to the European Court essentially argued that it was unfair that foreign property owners should be charged 35 per cent tax when a Spaniard would only have to pay 15 per cent. The Court agreed.

Subsequent to the change in the law, both Spanish and foreign owners will have to pay 18 per cent.

Since 2006, the number of foreigners living in Spain has risen by 11% to now a little over four million.


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