Hi everyone. I have a question and don't know what to do.I will explain and keep it as short as I can.
I am spanish and have a spanish id card and my partner is english with a residencey card. My id card is valid until 2015.
I sold a property in 2005 in spain and reinvested in 2006. The first property I was in we lived there for 5 years so was told if I reinvest in another residual property I would not be liable to pay CGT as long as I lived in the new property for 3 years minimum.
I had to return to the uk in 2008 as our business went down the pan and could not afford to stay there, so have been sending money from the uk to pay the mortgage in spain.
My question is. I am now trying to sell the second property and am worried they try to sting my for capital gains on my first property as I was not living in my second property for 3 years
Is there any way I can get around this. I still own the property. Could I not say when I sell that I was a resident up to 2010 in spain and then moved over after then. I haven't told Spain we have left.
The only problem with this is the last declaracion we did in spain was in 2007, so am worried they will aksed why I didn't do any declaraciones. I was going to answer this by saying that we lived off the gains we made from the sale of our restaurant for a couple of years and as we werent making any gains we didnt think we needed to file a return. This is true as we lived off this money in the uk and haven't started making money until end of 2009.
I really don't want to pay cgt because as far as I am concerned it is still my main home and I am paying for it, I want to to sell but can't due to the crash, What do you all think?