Hello,
One of the conditions that must be met for capital gains rollover relief is to have lived in the property for a minimum of three consecutive years, prior to selling. Are the three years counted from when a person is physically resident in the property or from when they are fiscally resident? Please see the below example:
A person starts living in their Spanish property from July 2018 to date (they are registered on Padrón from July, 2018). They did not complete a tax return for the year 2018 as they lived there for less than 183 days in that year. They completed tax returns for 2019 and 2020 (and will complete the 2021 tax return in Summer 2022).
Question - will the three year count start from July, 2018 (physical residency) or from 1 January, 2019 (fiscal residency)?
Thanks