Re: Re: Comparison of living costs – Spain vs UK

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@angie wrote:

Can someone explain the Capital Gains Tax situation on own homes in Spain? In the UK this doesn’t apply to your own property, but I think it is paid on homes in Spain unless resident or continually re-invested in property for so many years, or age over 65 and resident 3 years. I’ve read it can go up to 30% of any profit on a sale of property. UK system seems a lot easier to grasp, ie ‘none’, unless on multiple properties 🙄

I think what you’ve said is broadly correct. As you say, the main difference is that in Spain you can end up paying CGT on your main residence if you sell it and then don’t buy another property within a certain timeframe (maybe 6 months). As I’ve mentioned elsewhere this might catch a lot of people out in the future if they sell their UK property in the same year that they become tax resident in Spain. Especially with the asset declaration requirements. Unless they buy a Spanish property pretty soon they could get stung for CGT by Hacienda.