When you are selling property in Spain it is important to get independent legal advice. There are important obligations on the seller and you should be aware of these. The tax authorities are now much more vigilant and you will not want to be looking over your shoulder once you have sold the property. It is particularly important to ensure that your funds can be transferred back to the UK or elsewhere having completed all the necessary documentation on leaving.
Leaving Spain
At the moment a number of people are returning to their country of origin and some of these people have been tax resident in Spain. A Certificate of Fiscal residence will be required if you have been here for some time and this must be obtained prior to the sale. The notary will not accept that you have been tax resident here without this document and you would therefore be subject to a 3% retention on the sale price. This 3% is taken on account from non residents and any additional Capital gains tax should be paid.
Tax Resident
A Spanish lawyer can calculate the sum you will receive on the day and ensure that you are not left with any ongoing liabilities after the sale. If you surrender your Spanish tax residence to take up tax residence in the UK for example it is very important to notify the tax authorities correctly. If you fail to do so fines could accrue without your knowledge and affect bank accounts or other assets. There is also now an obligation to inform the police if you surrender your residential status. You may for example move back to become tax resident in the UK but still have property here. If you have not provided forwarding address even old traffic or speeding fines can suddenly pop up in your bank account in Spain so it does pay to ensure that you have the right information about selling property and surrendering your residential status.
Professional Advice
Prevention is always better than cure and it is best to get advice from experienced property lawyers and accountants particularly when you are selling property. If you keep the property you owned in Spain but return to the UK you should also ensure that you have looked at the inheritance tax issue as at present non-residents are paying fairly high levels of inheritance tax on Spanish property. Andalusian tax residents can take advantage of some tax exemptions so individual advice and calculations are important when deciding on your next steps. And apart from Easter time, Andalucía also has better weather…..
For more information
To find out more or to book a no obligation, private consultation, call Jon Sutton on 951 315 161 or email [email protected]
De Cotta Law (De Cotta McKenna y Santafé)
Coín Office:
Local 6, Sierra Chica
29100 Coín
Málaga
Mail:
Spanbox B220
Apartado 178
29100 Coín
Málaga
Tel (0034) 951 315 161
Fax (0034) 951 315 162