A B (Costa Blanca)
You have tripled your money in two years, turning a profit of €200,000. It seems you will have to pay the full rate of Spanish capital gains tax, at 23 per cent of your profit, for a hefty tax of €46,000. Reductions are available but you do not seem to qualify. If you are a tax resident of Spain, this means you pay Spanish income tax. 1. If you have tax returns for the previous three years. 2. And if you have held your principal residence for three years. 3. And if you use all your profits to buy a new principal residence in Spain, you would be free of capital gains tax.
Send your questions for David Searl through lawyers Ubeda-Retana & Associates in Fuengirola at [email protected], or call 952 667 090.