CGT on Spanish Property

[jaycee 2200]

I ahve sold a property in Spain which I use for holidays only and purchased another one. I have paid 5% Witholding Tax but am told that I have to pay the balance of 35% CGT in Spain. I purchased in 1999 and declared it to Irish revenue as an asset acquired. Can I pay the CGT in Ireland which is 20% and have the 5% paid in Spain set against the tax?

 

[ARCH]

As you are not Spanish resident the 35% CGT will apply. You will allow be liable to Irish CGT but you can offset the Spanish tax paid i.e. there should be no additional Irish CGT.

In Spain roll-over relief is available for the sale of your home if you are Spanish resident but clearly this will not be available to you.

If you were Spanish resident the CGT rate would have been 18%. If you gain was big enough it might have justified moving to Spain for more that 6 months in the year of disposal?

 

[ClubMan]

There are some useful links about foreign property taxation in the second half of this thread.