french business property

There is much talk now only in Spanish property circles about the recent reduction in Spanish Capital Gains Tax. Many Spanish property developers and, more importantly, the service agencies in the UK market, are quick to point this and often to attract UK buyers to the Spanish market.

Empire homes believe this is the latest example of misleading half-truths and hype all too common in the Spanish real estate sector. The company points out that for the majority of UK resident buyers, the capital gains tax to pay on the sale of Spanish property is not expected to be very different than it was before.

The sale of Spanish real estate by a British resident is now a Spanish CGT liability by 18%, compared to 35% prior to the new law with effect from 1 January. It is important to know that this profit to a CGT liability back into the United Kingdom, the Spanish network of lower taxes, per the double taxation treaty between Spain and the United Kingdom, will now be higher. Houses Kingdom believe that the main impact of this change is in fact a higher tax liability for Spanish citizens who now pay 18% instead of 15%.

Rich-UK Homes encourages buyers of Spanish property to ensure that they fully understand the implications for the purchase, then hold, and finally the sale of a Spanish property, and not to over-influenced by the partial positive information too often from persons with an interest. The company believes that a major investment of this nature requires considerable diligence on the part of the British buyer prior to the visit of properties in Spain and the help of a property in Spain that the agent can be trusted to ensure the buyer of its own interests before .

It is perhaps instructive to appreciate why this change Spanish capital gains tax in the first place. It was not to improve the Spanish property market, but in response to a decision of the European Union is forcing Spain to eliminate tax discrimination against its non-residents.

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