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I am buying there and having to pay a bit of the vendors tax -as I am over 65 I can write it off by 3 years residence there .I am a little uncertain about the exact rules though. Do you need to have to be resident the last three years up to when you sell or does it suffice that you have been resident and paying taxes for any three years comsecutive or not since you bought it -maybe for health reasons you are selling but living currently in UK aagain. Any comment greatly appreciated.
I also wondered if you can move to another property within Canaries or mainland Spain if you are over 65 in a shorter period if you are a resident capital gains free if you re- invest the sale proceeds.
I was very concerned about the capital gains possibilities but find that the rate is now 19% not 35% as it was changed about 3 yrs ago to then 18% on a sale/. Of course when one calculates the gain all money spent on the property together with receipts can be offset as purchasing and sales costs and this overcomes my worries -changing your country of residence unnecessarily causes a lot of paperwork and accounting work and tax questions. Spanish personal allowances less than UK and taxes on dividends higher too. Having to report to HMRC is enough without another in a different language !!!
As a Spanish property virgin I just wanted to confirm. When you sell a property you will be libel to 19% capital gains tax on the profit you made on the original purchase price of the of the property. Do you add onto the purchase price the cost of purchasing ie solicitors fees, tax expenses etc. Do you also include any improvements ie decorating etc. Then, when selling do you deduct sales expenses/fees etc
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