CGT Relief

Information and questions about the Law in Spain and Andalucia.
User avatar
fincalospinos
Resident
Posts: 1008
Joined: Sat Jul 16, 2005 9:17 am
Location: Caleta de Velez

CGT Relief

Postby fincalospinos » Mon Feb 03, 2020 4:08 pm

Can someone give some guidance on the following scenario.

Full time resident in Spain, fiscaly domiciled in Spain, under 60 years of age.

Decides to sell their main home of 5 years.

Decides not want to buy another house but to rent somewhere long term.

Would any mortgage interest payments be deductable from the profit on the sale ?
Hardworking resident !!

Beachcomber
Andalucia Guru
Posts: 11081
Joined: Tue Jun 15, 2004 11:11 pm
Location: Guadalhorce Valley

Re: CGT Relief

Postby Beachcomber » Mon Feb 03, 2020 4:31 pm

You can only deduct legal expenses for the cancellation of the mortgage.

User avatar
fincalospinos
Resident
Posts: 1008
Joined: Sat Jul 16, 2005 9:17 am
Location: Caleta de Velez

Re: CGT Relief

Postby fincalospinos » Tue Feb 04, 2020 9:07 am

Thanks Beachcomber.
Hardworking resident !!

User avatar
marios
Resident
Posts: 492
Joined: Sun Sep 05, 2004 11:13 am
Location: Nerja

Re: CGT Relief

Postby marios » Tue Feb 04, 2020 6:02 pm

Just a question on CGT Relief re reinvestment of house sale from Spain to uk, I take it now we are out of the EU ie EEA that I cannot use this to avoid capital gains tax bill or is it still available whilst the transition period is in place till the end of the year.

El Cid
Andalucia Guru
Posts: 16058
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: CGT Relief

Postby El Cid » Tue Feb 04, 2020 6:54 pm

It’s not clear, but it may be OK if the country of purchase is one of the countries that swaps financial information. You do have until the end of the year before the rules may change.

Sid

elusive
Andalucia Guru
Posts: 3275
Joined: Sat Apr 07, 2012 11:49 am
Location: East of Malaga

Re: CGT Relief

Postby elusive » Tue Feb 04, 2020 8:21 pm

Yeah until the end of the year we are still in the EU in all but name and follow the rules.so sell up before then...

User avatar
marios
Resident
Posts: 492
Joined: Sun Sep 05, 2004 11:13 am
Location: Nerja

Re: CGT Relief

Postby marios » Tue Feb 04, 2020 8:25 pm

I hope so guys as it would be a big saving for us.

Miro
Andalucia Guru
Posts: 3584
Joined: Tue Feb 27, 2007 8:20 pm
Location: Merseyside, formally Torremolinos

Re: CGT Relief

Postby Miro » Wed Feb 05, 2020 6:12 pm

As far as I know, the exemption/relief applies if you are reinvesting the sale proceeds in another EU country, or another EEA country. I'm not sure, but I am not aware of any intention for the UK to remain/become a member of the EEA. So I wish you well with selling ASAP. I would aim to have the sale, and subsequent purchase, completed before the end of this year. Although I think you are normally allowed a 2 year grace period in which to reinvest, I wouldn't want to take any chances!
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.

User avatar
marios
Resident
Posts: 492
Joined: Sun Sep 05, 2004 11:13 am
Location: Nerja

Re: CGT Relief

Postby marios » Wed Feb 05, 2020 6:18 pm

Thanks Miro, yes we intend to purchase before year end.


Who is online

Users browsing this forum: No registered users and 25 guests