Torrevieja Forum

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By Manc-Mark
I have a house in Spain that I permanently live in, I also have an apartment in the UK which I am considering selling and will make a considerable profit on. However I am concerned about CGT as I understand it I would not have to pay it in the UK but I would here in Spain unless I purchased a property and made it my primary residence, I would then sell the property I presently live in.

If I didn't buy a property here in Spain immediately would I still be liable for CGT or is there a time limit say two years before I had to pay it?

Hope that makes sense!!

Any advice would be greatly received


By strolling_minstrel
As a resident in Spain you would be liable to CGT on your property in UK on the gain it has made since you became resident.

If you've been living in your property in Spain for 3 years or more, you can invest the gains you made in another property which can be in any country of the EU but must continue to live there for a minimum of 3 years and you must invest the whole of the amount of the gain in the new property.

This bit confused me from a lawyers site
You must then buy a new main residence within four years, starting two years before the sale. Does that mean you have two years or four?

One other thing, you have to declare the CGT on your annual tax return and declare that you intend to spend the profit made on a new, primary residence. Failing to make that declaration could mean the CGT relief is denied.
By Manc-Mark
Thanks strolling minstrel
I have had my house in Spain for nearly twelve years but only lived in it permanently for sixteen months so would that cover your comment in the 2nd paragraph?

By strolling_minstrel
It has to have been your primary residence for 3 years so if you haven't been resident for that long then it won't count.
The time can be reduced for moving for a job, on marriage or some other reason but I doubt whether that would apply if you haven't been resident for that long.
On the plus side, you'll only pay tax on the gain made in UK over the last 16 months.
By Manc-Mark
Thanks Karen, good idea going to see more than one advisor just not sure how you find out which one is providing the correct info on your experience. Probably best go with the explanation that comes from the majority!!

By Info
I know its too late now but the advice to people moving permanently to Spain has always been sell your property in the UK and wait one year before becoming tax resident in Spain. This is because of the tax year in Spain being a year in arrears. You then have no tax liability on the sale in Spain. The property market doesn't always oblige of course. Bee
By Beardyboy
If what strolling Minstral says is correct about the profit made in the past 3 years, hopefully,the greater profit will have been made long before that and your CGT will not be huge.
No idea if this would work but could you buy another cheaper property in the UK and keep it for a few years and then this point ,you would have to pay the tax but it may very well be less.
I am probably talking nonsense but hope you can manage not to have to part with too much on taxes.
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