Taxing times in Spain good news for us

GOOD NEWS about tax? Yes, if you sold a property in Spain in the past few years and had to pay its swingeing 35 per cent CGT.

Following a landmark ruling by the European Court of Justice against the Spanish tax authority, thousands who sold in 2005 and 2006 could be in line for a significant windfall from the Spanish tax office. So says Colm Murphy of Property Tax International (PTI), an Irish accounting company which does bookkeeping for overseas property owners.

Up to January 1st, 2007, the CGT rate in Spain was 35 per cent for non-residents, over twice the 15 per cent for residents. Rates were brought to 18 per cent for all after the court’s verdict – and those discriminated against are due a refund.

How to get it? Check to see if you have tax form Modelo 212, or 210, which would have been signed and presented to the tax office when the property was sold. You’ll also have to make a legal submission before the Spanish courts, but there will be no cost to the seller, says Murphy, as the cases are fought on a no-win-no-fee basis. More info on www.ptireturns.com.