Q. The law on capital gains tax seems to be clear. When you are over 65, and have owned your house as a principle residence for more than three years, and are an official resident of more than three years, you are free of Spanish capital gains tax when you sell your home.
The question I have is about tax residency. In your book ‘You & the Law in Spain’, you refer to ‘Spanish resident or the EU Certificate of Residency’. This EU Certficate is the issue. Does this not establish tax residency?
My Spanish gestor said: ‘no way!’ Only tax residency for three years counts.
P.H. (Costa del Sol)
A. Your Spanish gestor is quite right. Only copies of your Spanish tax returns for the past three years will justify your exemption from capital gains tax. The word ‘resident’ means you pay your taxes in Spain. If you are an EU citizen, you hold the Certificate of Residency. If you are not an EU citizen, you hold a residence permit. Either way, you must pay your taxes in Spain.
Send your questions for David Searl through lawyers Ubeda-Retana & Associates in Fuengirola at Ask@lawtaxspain.com, or call 952 667 090.