CGT payable in Spain on disposal of a UK property


This topic contains 2 replies, has 3 voices, and was last updated by Profile photo of Mark Stücklin Mark Stücklin 10 months, 1 week ago.

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  • #188680
    Profile photo of JCA

    I have searched but can’t seem to find an answer to this, hopefully someone will have it at their fingertips.

    I’m planning on becoming a Spanish resident but currently live in the UK with family.

    My only property anywhere is in the UK, the former family home which is let.

    If I sell before changing residency, I assume no CGT in the UK.

    If I delayed the disposal until I became a resident in Spain what would be the exposure to CGT payable in Spain, ie what figures would be used to calculate any gain?

    Property was new build in 2001, cost £110k, remortgaged in 2009 to settle a separation at a notional valuation of £230k. ie. paid £115k to partner as half share of value.

    Property is now in my name only with a current likely market value £250k.

    Also, can the CGT payable in Spain be mitigated by any incurred costs eg. home improvements and is there any CGT saving to be made by investing in Spanish property?

    Thank you in advance. Any guidance most welcome.

  • #188778
    Profile photo of inbarcelona

    Personally I would not tell the Spanish tax authorities in Spain anything….I don’t see how they can find out about your property in the UK.




  • #188792
    Profile photo of Mark Stücklin
    Mark Stücklin

    JCA, you need to talk to a specialist firm like Blevins Franks to get a tax comparison Spain vs. UK in your particular case. However, I suspect you will be better off selling as a UK taxpayer if you pay no CGT. It’s possible you might also avoid CGT in Spain if you can demonstrate that it was your main home and you spent the proceeds buying another main home (this time in Spain), but I’m not sure about that.

    If you do come to live in Spain and have any asset back in the UK worth more than €50,000, like your house, then you need to declare it in Spain. The cost of not doing so is now crazy (the law in Spain on worldwide asset declaration is crazy, and being contested at a EU level). It’s not worth the risk of not declaring, now that EU governments are getting better at sharing information). Learn more about the worldwide asset declaration (modelo 720) requirement here.

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