Spanish Property Insight › Forums › Spanish Property Forums › Property Questions & Answers › about to sell flat in central Barcelona, need urgent advice! › Reply To: about to sell flat in central Barcelona, need urgent advice!
Further to our recent thread and my last reply, wanted to update you. We saw the accountant/ advisor of our estate agent on Friday eve, he deals with foreign and local business taxes etc and was very helpful. We showed him our residence certificates and empadronimiento docs and he said that we are most definitely residents and my partner definitely fiscal resident, he said Hacienda would know about us and even though we’ve not done declarations, we would already be on their radar if they wanted to get back taxes, if any were owed. In his opinion he said we should be considered as tax residents and no withholding CGT/ taxes should take place, we would be given the full selling price, less plus valia and agency fees, then we would have to complete a tax return next year, in May I think, in which we declare the capital gains, after that time we would have 3 years to re-invest either here or another EU country, if we don’t invest all in our first residence we’d have to pay the difference. He said we could even return back to live here and re-invest, always paying any difference in the profit back. Based on figures presented, our capital gains are around 18k. I asked him to make absolutely sure on this as we didn’t want a nasty shock on completing the sale if a tax certificate was needed, he said he’d never known this to be asked for with the kind of documents we have. He is speaking to his notary who will confirm what they ask for at the completion, if he says we will not be retained the 3% and can re-invest, we will go ahead and sell to this buyer as no idea when another may come along. The plan would be to get enough money in the UK in the next couple of years to either pay back the CGT or invest all of it and come back to rent, if not buy in a few years. We have decided that staying here on this ticking time bomb will only prolong what we have to do, there are no opportunities here, only tourism and that is becoming harder to make money out of due to the new mayoress who is so against the industry. Aside from this, the taxes involved in being self employed or buying and selling property are so outrageously high, it is impossible to do things by the book. Very sad that this country cannot see this and it’s why a quarter of the economy is in the black. I will update you on what the notary says, if he is not sure, we will have to think again, seems like nobody here knows what the rules and regulations are! Thanks again for your time.