Changes to Spanish Capital Gains Tax Part 1
It would appear that the Spanish authorities may have to change their thinking regarding capital gains tax. The European Union it would appear have forced them to make sweeping changes to the percentage amount that they charge property sellers. Like all things political, despite the possibility that they will lose a large amount of income, it would seem that they are aiming to make a gain from another source.
It has come about due to the number of complaints from EU citizens that the rate paid by non-residents was excessive, the European Union has taken up the mantle with Spain and forced through the change. The old rate was a staggering 35 per cent; this has now been reduced to 18 per cent.
Of course this now means that the standard rate is 18 per cent, which in turn has the downside that all foreign residents and Spanish Nations will see a rise of 3 per cent to bring them in line with the new legislation.
The main focus of attention is of course the business euro, as many people have bought properties under the umbrella using an offshore company type structure. Look out for part 2 in the near future.
Pablo Conway has been visiting Spain on a regular basis since purchasing his home on the Costa de la Luz. www.spanishbankaccount.com
