If you sell a Spanish property and buy another is there relief on capital gains tax?

Please adhere to the forum rules when posting

Posted by	Messages (sorted from oldest to newest)
Tuesday, January 29, 2008 Guinnessman Parcela I've made 8 posts Send private message to Guinnessman	Basically I would like to know if you sell a property and get hit by the capital gains tax for foreigners do you have a period of grace where if you purchased another Spanish property or land do you get this rescinded? Is there a period of time that you would need to be looking at ?  Do you pay the capital gains tax there and  then on the sale of  the first  property and reclaim it back when you purchase the next property? Spam post? If so please click here to report it
29 Jan 2008 12:41 PM bobaol Finca I'm in Leicestershire and El Galan, moving to Guardamar in a couple of years I've made 543 posts Send private message to bobaol	As I understand it, a certain amount (3%???? someone will know) is retained from the sale.  This goes to the tax people unless you buy another (more expensive ?) property. Is that right?  Sure Rixxy, Mario, Georgia et al will know the answer to this one. Spam post? If so please click here to report it
29 Jan 2008 1:40 PM mariadecastro Finca I'm in Algeciras (Cadiz) I've made 726 posts Send private message to mariadecastro	The exemption is as follows: the sale of principal residence is not subject to taxes if the whole amount obtained with the purchase is re-invested in the buying of a new principal residence. _______________________ Maria L. de Castro, JD, MA Lawyer Director www.costaluzlawyers.es Spam post? If so please click here to report it
29 Jan 2008 1:46 PM morerosado ** EOS Superstar ** I'm in Somerset, UK / Guardamar Del Segura on the Costa Blanca (Completed April 2005) I've made 4557 posts Send private message to morerosado	Am I correct, Maria, in thinking that you only have up to 3 years in which to buy your new residence after selling your first in order to avoid paying tax? I'm sure I was reading about that or was I dreaming ? _______________________                    Hello-o-o I'm a                              Hey, I blog on EOS now. Go read it !                          Our experiences of buying in Spain Spam post? If so please click here to report it
29 Jan 2008 1:52 PM mariadecastro Finca I'm in Algeciras (Cadiz) I've made 726 posts Send private message to mariadecastro	two years. Maria _______________________ Maria L. de Castro, JD, MA Lawyer Director www.costaluzlawyers.es Spam post? If so please click here to report it
29 Jan 2008 2:57 PM Guinnessman Parcela I've made 8 posts Send private message to Guinnessman	Thanks that's great. Thanks Maria for the advice. However if you purchase a plot, the plot price might be a lot less than the value of the property sold. Therefore how do the tax office calculate the cost of the build on the plot? Is this based on the basic project that is approved by the college of architects and estimates the build cost? Another potential downside is the time it sometimes takes to get planning permission and get the paper work processed. Two years might sound like sufficient  time  but  from the sale of an apartment til completion of a villa could very well take longer than 2 years. Bit of a conundrum there possibly. Spam post? If so please click here to report it

DISCLAIMER:  All opinions posted on these message boards are the opinion solely of the poster and do not necessarily reflect the opinion of Eye on Spain, its servants or agents.