Hi,
I wonder if someone could shed some light on this.
I have been living and working in Spain for 4 years. I am a resident with an NIE and a proper job. My partner got an NIE when she arrived but it has expired and she has never worked. We have 2 kids in the local school system.
We are in the process of selling our jointly owned house in the UK. As it was our primary residence in the UK we will have to pay very little CGT in the UK.
But I’ve just found out that we are liable to pay CGT of up to 23% in Spain…
“Under the UK/Spain Double Tax Treaty, gains arising on UK properties are subject to Spanish capital gains tax at rates of up to 23%. This would apply even if the property was your main home before you moved to Spain. You would also be liable to UK capital gains tax. From 6 April 2015, UK capital gains tax applies on the sale of UK residential property even if the owner is non-UK resident.”
https://www.blevinsfranks.com/Portals/0/Tax%20Guides/SpainTaxGuide.pdf
Can anyone tell me how they work out the % I would pay.
Moreover, if my partner is not officially resident here, would we pay on here half of the property?
It seems bizarre that Spain would apply a tax on UK property when the UK does not.
Thanks in advance!