New tax rules in Spain no threat to UK investors

The new tax cuts for non Spanish residents that have changed to give us a huge reduction in capital gains tax from 35% - 18% in line with Spanish residents has no negative impact for Brits buying abroad. The dual tax arrangements that meant we used to pay 35% capital gains tax to the Spanish Government were seen as unfair and have been bought in line with the current residents tax of 18%. This means that instead of paying 5% to the UK Government we pay 22%, but the overall figure of 40% remains the same.

The new legislation takes place with effect from 1st January 2007 following a European Court ruling upholding that the discrimination was unfair, and so for the 800,000 Brits living in Spain already be it permanent or temporary, this is fantastic news as they will now only have to pay 18% to the Spanish Government.

As the tax for UK residents is only payable on the second home the keen investor looking to move to sunnier climes will make a huge saving.

Those Brits living or working in Spain and not having to pay UK capital gains tax will make a huge saving going forward, this only serves to further endorse the Spanish property investment market for the UK investor, whether you’re thinking of moving now or investing for the future.

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