Wednesday, April 1, 2009

Tax rebates available for Brits on Spanish property

Nearly 10,000 Britons who were overtaxed by the Spanish government when they sold their villas in Spain are in line for rebates averaging £14,500 following a court ruling.

According to the Telegraph reports, the case was brought by retired aircraft engineer Alan Roy, 65, and his wife Margaret, of Molesey, Surrey. The British couple was charged the non-residents CGT rate of 35 per cent, while nationals pay just 15 per cent.

They argued that the higher rate contravened the European Community Treaty rules on discrimination. The court in Valencia ruled that the higher charge must be repaid to Mr. and Mrs. Roy, with six per cent interest and the estimated average payouts will be £14,500. The court accepted that the case was so convincing that there was no need for it to be passed to the European Courts of Justice.'

Commenting on the verdict, Mr. Roy said: 'We were overcharged on 10,000 euros' profit, so ours was a small claim.

'We'll get back about 2,000 euros, but the principle is established for others to get justice.'

Lawyer Emillio Alvarez, who represented Mr. and Mrs. Roy, commented: 'After winning the first case we are now able to guide other British owners who were wrongly overcharged to reclaim their money.'

Mark Bodega, from currency broker HiFX has stated that this is excellent news that the first British couple has been successful to contest the scandalous overcharge and remaining British claimants are now in the process of putting their cases forward. Between them they could reclaim £8.4m plus interest, based on the average reclaim amount of £14,100."

How to claim

Eligibility: You are entitled to make a claim if you sold a property in Spain between July 2004 and December 31 2006, and you were not a fiscal resident in the country. You must also have paid CGT on the property and to have sold as an individual, rather than as part of a company.

Ensure you have appropriate documents: British property owners who sold their villas in Spain must have a copy of the tax form called Modelo 212 or 210. If they do not have a copy, one can be obtained via Costa, Alvarez, Manglano & Associates.

Brits who believe they have a claim can check the website www. spanishtaxreclaim.co.uk

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