Reclaim Spanish Capital Gains Tax Paid 2003-2006

According to the website  www.spanishtaxreclaim.co.uk

If you sold your property in Spain between 2003 and 2006 you could be entitled to reclaim thousands of pounds back of the Capital Gains Tax you paid.

In the past non-residents were liable for 35% capital gains tax on property sold in Spain compared to only 15% that was payable by residents.  The EU has ruled that this was discriminatory and the rates were lowered to 18% with the resident rate increased to this same amount.

To qualify they state you must fulfill the following criteria:

1. You sold a Spanish property between May 2004 and December 31st 2006.
2. You were NOT a fiscal resident in Spain when you sold it.
3. You paid the Capital Gain Tax to the Spanish Authorities.
4. You sold your Spanish property as an individual; not as a company.
5. You have, or can obtain, a copy of the Spanish Tax Form “Modelo 212” you completed when you sold the property

They also have a calculator on the site which allows you to estimate how much you are entitled to.   Based on a €200,000 property purchased in October 2005 and sold for €250,000, they calculate you could be entitled to approximately €10,000!  Not to be sniffed.

Rush over to their site and see if you qualify - www.spanishtaxreclaim.co.uk

Thanks to Steve Clark of www.euro-cheque.com for bringing this to our attention.

New Snagging Forum

For any new property buyers in Europe there is a new forumwww.thesnaggingforum.com which is dedicated to helping only withbuilding and construction issues and has lots of useful information,guides and photographs

Long Term Lets - A solution to the housing crisis?

Kyero today announced that long-term lets have increased in popularity with approximately 20% of all enquiries for rental property now for long-term lets. Which could be very good news for property owners.

The majority of owners prefer to rent only to tourists as the prices charged during the holiday season are far higher than monthly rental charges. However, this has to be weighed against the lottery of being able to get enough clients, which in itself requires a substantial amount of work.

In addition, while there looms the new threat of the need for a tourist licence if you are planning to do holiday lets, long-term rentals do not require this - apparently, but always check with a local lawyer to be sure.

There is no doubt that it will take some time for confidence in the Spanish housing sector to return, during which time there are many property owners left with a property they were never planning to keep, which they are unable to sell, and which is costing them money.

Long term lets could well be the answer allowing owners to ride out the current dip in the market, while earning some income from the property towards the mortgage.

Costa Blanca Legal & Financial Services

Legalandfiscal.com is a firm based in Javea, Alicante providing legal and accounting support in the area.

Through their collaborations with Spanish lawyers and a UK network they can offer help both with Spanish and UK issues. Founded by Glyn Moran who is a qualified UK solicitor who is also a fluent Spanish speaker.

They offer a host of services including having written a guide to buying property, taxation, inheritance tax, conveyancing and wills/probate.

Visit their site for further information at www.legalandfiscal.com

Tax Declaration on Rental Income

If you completed on a property before December 2006 you are now required to declare your rental income to Hacienda:

"Due to the new Income Tax Act which has taken effect from January 1st, 2007, non-residents have to declare whether his/her property in Spain has generated revenue from rentals or not. Owners must continue to present this declaration every year to the Tax Office, ensuring that all documents are completed and up-to-date."

We are now nearing the end of the year so you only have a month left to present your 2006 declarations!

Snagging New Properties

For those who are not familiar with the term snagging, it is a list of all the problems found with new build properties e.g. leaky roofs, faulty installations, bad workmanship etc.

Once you have signed the contract for your new property you must submit a snagging list within 15 days if you want the work seen to immediately (a relative term in Spain!). Ideally, you should visit the property before you complete and present the snagging list to the developer before handing over any money. The developer will be much more motivated to fix any problems in this case rather than after you have signed.

There are several companies that offer to do snagging reports and the average costs seems to be approximately €190 for a two bedroom flat. While you might see it as expensive, consider that most of the problems you are likely to find will cost more than this to repair, and if the problem is structural could run into thousands of euros. (While there is supposed to be a 10 year guarantee on new build property, how long it takes the developer to come and resolve your problems is quite another matter!)

There is the cheaper do it yourself option such as using the DIY Snag Report which has apparently been recommended by EyeonSpain.com. The DIY Snag Report gives you templates to use for a step-by-step formula to snag your property.

Whichever option you choose - choose one of them! Yet something else that could save you time and money.

Self Build Property

A new website is now available for those looking for advice on self build in spain at www.spainselfbuildproperty.com.

Sponsored by www.timberdevelopments.com who provide Timber Frame kits for the DIY builder, they now have a division in Malaga.

The Forum is a place to ask any questions you might have about the self build process in Spain.

They are also looking for regional managers throughout Spain which could be a business opportunity for expats who have not yet found their niche.

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