Sold your home in UK before moving to Spain ? CGT on it in Spain?

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03 May 2013 1:33 PM by camposol Star rating in Camposol. 1406 posts Send private message

I read a puzzling thread on another forum which seemed to state that if you sold your principle residence in UK moved to Spain, bought a house here,( having signed the contract in Spain before  you sold your UK house),you would be liable for CGT.

Is this true-what if you  put a deposit on your house in 2000, sold your UK house in 2001, moved to Spain, became resident in 2002, then paid the last instalment on your Spanish house in 2002.

Johnx will know!

 

 


This message was last edited by camposol on 03/05/2013.



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03 May 2013 2:29 PM by johnzx Star rating in Spain. 5242 posts Send private message

 

Camposol, I have never known anyone in that situation but if one is not tax resident in Spain then they cannot be required to pay tax on their worldwide assets.
 
If they had become tax resident in Spain, and then sold in UK,  I would assume they may well be liable, but the Double Taxation Agreement between UK and Spain will probably clarify it, if anyone NEEDS to know.
 
I know when I purchased a property in Spain in 1983, whilst I was resident in the UK,  I was obliged to tell the Inland Revenue of the purchase which was a ‘potential’ capital gain.




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03 May 2013 2:39 PM by baz1946 Star rating. 2327 posts Send private message

You MIGHT be liable....MIGHT being the operative word in the eyes of the Tax Man.

Look on the HM Revenue & Customs website for the correct information about this, i would think that one forum is confusing enough without looking on another one.





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03 May 2013 7:56 PM by guslopez Star rating in Lorca, Murcia.. 744 posts Send private message

It is the same in the UK , as in Spain. For example if you own a UK house& purchase a holiday home here, legally when you sell it then CGT is payable in the UK. If though you move to spain& purchase , register as a resident , then sell the Uk one then CGT would be payable in Spain. The only difference between UK & Spain is that in spain CGT is payable on the main residence, subject to regional allowances.

The UK tax office stated last month that they were going to investigate ALL house sales over the last 20 years with aview to finding undeclared  CGT !

 

The thread you read over the road was about someone selling there house in the UK now, moving to Spain immediately, which would then make them liable for a tax declaration in Spain next year when they would have to declare the housesale which in turn could leadto the possibility of having to pay CGT here in Spain.

The advice was to ensure that they are not resident in Spain before the 2nd July , day 183 thereby making them not liable to declare next year & the following year they would not be declaring a house sale !

 



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Todos somos Lorca.




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