Friday, April 18, 2008

Possible Tax rebate for overseas investors

Emilio Alvarez, a Spanish lawyer, recently said that Non-Spaniards who have sold property between March 2004 and December 2006 in Spain could be in line for a substantial tax rebate.

CAM&A (Costa, Alvarez, Manglano & Associates) and HiFX has said that overseas investors who sold their properties between March 2004 and December 2006 paid an income tax rate of 35% on any capital gains. On the contrary, Spanish nationals paid only 15%. These disproportionate charges breach the EU Treaty. The non-residents have paid 20% over the usual limit equates to a total income of nearly £37m and average at £11,000 each including interest.

Capital gains tax (CGT) rate forced non-residents paying inflated CGT bills to the extent of 20%. This tax is thought to have affected thousands of overseas investors.

The capital gains tax for non-residents has now been reduced from 35% to 15% in 2007. Consequently, thousands of overseas investors who’d previously sold property in Spain are entitled to a 20% rebate.

More details is available on or by calling their helpline on 0845 680 3849.