A landmark court ruling comes as welcome news for up to 10,000 Britons who own properties in Spain, says The Sunday Times.
Alan and Margaret Roy have successfully claimed about £3,000 from the Spanish government after they were charged more than twice the amount of capital gains tax (CGT) as local residents. Lawyers say this “opens the floodgates for claims”; currency specialist HiFX says that at a conservative estimate, Britons are each due £14,100 in overpaid CGT.
The Roys bought a property for e150,000 in 2001. When they sold it three years later for e160,000 they were charged 35% on the gain instead of the Spanish flat rate of 15%. The European Commission ruled last year that this disparity contravened European Union legislation. A Spanish Court has upheld the Roys’ claim for a 20% rebate, plus interest. Under Spanish law, there is a “limited window for registering claims”, so move fast.
You may be eligible if you sold a house between mid-2004 and the end of 2006, during which time the 35% tax rate was set. See www.spanishtaxreclaim.co.uk, or call 0845-680 3849.