Spanish cgt rip-off exposed

Brit investors who have sold property in Spain could be in for a big cash windfall…

According to law firm Costa, Alvarez, Manglano & Associates, investors who made capital gains by selling Spanish properties could be due tax rebates to the tune of a collective 50 million pounds

Firm spokesman Emilio Alvarez, explained: “Investors could be in line for a 20 percent tax rebate because foreign non-residents were charged a higher rate than Spanish nationals -- and that contravenes the European Community Treaty.

“Those who sold a home in Spain before changes to the rules last year were charged the Spanish non residents' income tax rate of 35 percent on any capital gains instead of the Spanish flat rate of 15 percent. That means those affected can try and reclaim the difference from the Spanish authorities, plus interest”

Tax trap?

Mr Alvarez added: "The situation could prove to be the largest class action against the Spanish government for years. A Change in the law at the start of 2007, which saw the standard capital gains tax for non-residents being brought in line, passed by largely unnoticed. But this tax trap is thought to have affected hundreds of thousands of people across Europe and in the UK.

"Due to stringent legal restrictions, people who bought at the start of 2004 have already missed out, as claimants must register within four years, but thousands of investors can still join forces and fight to get the Spanish tax authorities to pay back the money owed."

For more information, go to http://www.spanishtaxreclaim.co.uk