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Thank you all. I managed to glean the information I needed from your discussions. I do understand there are two taxes involved and the buyer pays the CGT from the holdback which is fine with me as it will be one less thing for me to deal with until reclaim of course! And yes I am non-resident.
Sorry you appear to have got it wrong
The 3% is withheld by the buyer and paid into a government account, against the CGT the seller must pay. The buyer has no access to that account. Of course ite CGT may come to more, or less, than the 3%, in which case it is for the seller to sort it.
(The system was introduced to catch those, who previously sold and left the country, without paying.)
The other tax is the Plus Valir. It too is the responsibility of the seller (to ensure either they or the buyer pays it)
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I still can't see how a buyer would agree to pay the plus valia tax (which is a considerable amount) normally paid by the seller. unless there was some inducement to do so. If I were a buyer and asked to pay it, like most, I would say No! Is it because the seller lowers the price by the same amount as the pv tax?
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During the boom years, it may have been possible to get the buyer to pay it, but pretty unlikely these days. On the other hand, I had a buyer (Spanish) a few years back who tried to suggest that I, the seller, should pay the transfer tax, notary and land registry fees. When I, and the notary, had stopped laughing, the sale proceeded as "normal"; they paid all the costs and taxes involved except the plus valia.
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"Get your facts first, then you can distort them as you please"
Mark Twain
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How can you buy a house in Spain as a non-resident? I thought you had to become resident if living in Spain for more than 90 days?
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Chrissx wrot How can you buy a house in Spain as a non-resident? I thought you had to become resident if living in Spain for more than 90 days?------------------------- GET AN NIE NUMBER AND PLENTY OF MONEY.. SIMPLE YOU DO NOT NEED TO BE A RESIDENT. WHAT COUNTRY ARE YOU FROM ????????????
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Sorry another question, just trying to get my head round this.
f you sell you house in UK to live permanently in Spain my understanding is that unlike the UK you will pay CGT in Spain. You get some reductions because you are selling you main residence but only on the percentage you reinvest the total sale price.
So in this example, you buy house in many many years ago in UK for £5k you sell it today for £400k then buy in Spain for £200k you pay CGT at 27% on 50% of £395k, over £53k! Is that correct?
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GET AN NIE NUMBER AND PLENTY OF MONEY.. SIMPLE YOU DO NOT NEED TO BE A RESIDENT. WHAT COUNTRY ARE YOU FROM ??????????? - UK
But if you have no registration cert/card, landlords are refusing to rent properties, you can't register for healthcare, you (in some areas) can't buy a car, if you have children you can't send them to school, etc. etc.
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landlords are refusing to rent properties,-------------- not on polaris world resorts they will rip your arm off, for you to do a long term rent ,ive sold a few house in the uk bought in spain twice never ever been ask what price I paid for house in the uk, and im going back to Spain in June, do a long term rent and I will be buying another car just like ive done before.
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But I am talking about living in Spain, not illegally, and not just long term rents every now and again. What about your healtcare, insurance wont cover you for everything.
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Problems again. People listening to Chinese whispers and what that guy up the pub said. Of course you can buy a car without residency, loads of people have done, continue to do so and will do in the future. CGT on a house in UK when you aren't even resident in Spain? Why? Sell the house in UK. Move to spain a couple of days later. If people had to pay CGT in Spain there wouldn't be many moving over. Best advice, see a solicitor, one in each country. They really aren't expensive and you won't get half a dozen (minimum) wrong opinions to confuse you any more.
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If you are from the uk and live in Spain, you are not living illegally, as for healthcare you need to pay into the Spanish tax system for I think 2 years/
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It don't matter where you are from if you live in spain for over 90 days and do not register (residencia) you are breaking the law therefore you are living illegally.
You do not necessarily have to pay into the spanish tax system to get health care you can get it with an S1 form for up to 2 1/2 years if under uk retirement age, or permantly if you are over uk retirement age.
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It is not possible for me to sell my house before moving to Spain, if I could I would. So I will be resident in Spain so I will be liable to CGT. It is not chinese whispers, it's the law, just google it.
I would think that many that moved over were living illegally, but many are a little worried now with the new asset reporting laws and massive penalities for ingnoring.
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Chrissx I don't know why your asking these questions, because 5 mins later you seem to answer your own questions .I think Google is your best place or the bar, I I don't think you can be helped on here . good bye & good luck.
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Newworld, I am not answering my own question? My question was reagrding the calculation of CGT, the replies I got from you were, you don't have to be resident in Spain, which I know is not true. As for your smart comments, well obviously you cannot help me so best you don't comment on my post. The best bit of adivce came from bobaol, see a solicitor, which is what I intend to do, I was just curious if anyone could help. Thanks
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YOUR WRONG AGAIN This was your first question you asked was----How can you buy a house in Spain as a non-resident? I thought you had to become resident if living in Spain for more than 90 days? nothing to do with CGT even though the topic is Capital Gains Tax.
This message was last edited by newworld on 08/04/2013.
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"
It don't matter where you are from if you live in spain for over 90 days and do not register (residencia) you are breaking the law therefore you are living illegally.
You do not necessarily have to pay into the spanish tax system to get health care you can get it with an S1 form for up to 2 1/2 years if under uk retirement age, or permantly if you are over uk retirement age. "
You are talking nonsense. There is no "Residencia" any more . It was done away with in 2007. There is a requirement to register on the EU registration list but non-registration is a fine of €300 & that is it. It is not illegal ,nor can it ever be. EU rules, state that an EU citizen has the right to live where he chooses & the state has no right to offer Or confer residency but the citizen has the right to choose to live there.
You still nee an S1 to get healthcare as a pensioner. Most of the old forms are all called " S1" now.
If you where registered as resident or permanent resident before April 24th 2012 you have the right to full healthcare as do all spaniards without the need for any of the new requirements.
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Todos somos Lorca.
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I realise that you don't apply for residency. You apply for a certificate of residence. According to Spanish law you don't choose whether to apply for it or not. You need it to be living here legally.
You have to have a Certificate of Residence after you have lived here for 90 days. If you don't have the certificate you MAY not be able to do certain bank transactions, you MAY not be able to buy certain things like a house or a car, you will not be able to work legally, you won't be able to sign on as a self employed worker etc.
If you are living here illegally the authorities will be able to fine you. This is una infraccion grave and the fine is between 501€ and 10.000€. Contrary to what some people believe, irrespective of whether you have the new style residence paper or not, if you remain in Spain for more than 182 days in a calendar year you will be regarded as a resident for tax purposes, thus liable to pay income tax on your world-wide income.
You can get free health care before you have reached UK State pension age for up to 2 1/2 years depending on your UK NHI contributions. nhs.uk/NHSEngland/Healthcareabroad/movingabroad/Pages/Livingabroad
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