Sale dilemma of apartment on Costas Law area

This topic contains 2 replies, has 2 voices, and was last updated by  Sealady 6 months, 2 weeks ago.

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  • #194985

    Sealady
    Participant

    So glad to discover this forum, and I hope to get clarification: considering selling an apartment we bought in 1976,which is on the coast on Formentera. I’ve been told that it is OK to sell, as long as it is on the lease of as many years as are left according to the Ley de Costas. How much tax would have to be paid in Spain, and is this possible to be put against= any CGT payable in the UK? I am a pensioner. Many thanks in advance for any help, as it is a huge emotional wrench for me anyway, to have to sell!

  • #195092

    Mark Stücklin
    Keymaster

    Sealady, I can imagine how saddening it must be to have to sell up in Formentera after so many years in that little paradise.

    You are correct in thinking that  you can sell your lease / concession based on the number of years left, which was recently extended by 40 years (from 2018, so total 75 years from 1988).

    Due to Spain’s double taxation treaty with the UK you shouldn’t have to pay the same tax twice. It should be deducted from your tax bill (if any) in the UK.

    I can’t tell you how much tax you will have to pay. You’ll have to consult a lawyer or tax specialist for that.

    https://www.spanishpropertyinsight.com/tag/ley-de-costas-spanish-coastal-law/

    • #195094

      Sealady
      Participant

      Thanks so much Mark! Yes, it is truly sad to consider selling, and I have been procrastinating this for some time already! However, as I don’t use the apartment in the peak months, to travel there and back for short stints in spring and autumn, is too stressful. I have pretty much decided to sell, but don’t feel I should sign any contract until I’ve been able to find out my tax situation. So should I consult a lawyer locally on the island, when I go there next spring,or do you know of any reliable firm who could help me in the UK? I have a possible buyer, they want me to sign a holding contract right away…I am very cautious of signing anything at this stage!

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