QUESTION: In your piece on capital gains you say that sellers over 65 who are tax resident in Spain and have lived in their home for three years can be exempt from Spanish capital gains tax. You then say that, if you use all the proceeds from your sale to purchase a new main residence in Spain, you can also be exempt from capital gains tax. We have just sold our cortijo near Almeria but have only lived there for two years. We are both Spanish tax resident, but under 65 years old. All the proceeds from the sale of our house of €125.000 were used to buy our new main residence also for €125.000, so we used all the money from the sale to buy the new house. Will we be exempt from paying the Spanish capital gains tax when declaring this on my tax return next year?
N.D.B. (Costa del Sol)
ANSWER. Yes, you will be exempt from Spanish capital gains tax. This rollover credit is a separate regulation from the over-65 exemption and has nothing to do with age. Please check with a Spanish tax consultant.
Send your questions for David Searl through lawyers Ubeda-Retana and Associates in Fuengirola at Ask@lawtaxspain.com, or call 952 667 090.