British couple wins tax dispute

A British couple has won an unlikely legal battle against the Spanish Government over taxation...

The expat couple were awarded £10,000 after they won their case against the Spanish tax authorities, which was found guilty of charging the couple over double the amount of capital gains tax than was charged to Spanish buyers over a property sold in 2004.

It took more than a year to reclaim the overpayment, but the landmark decision opens the door for thousands of other British owners of Spanish properties to make similar claims to the Government.

British property owners and other foreigners have, until recently, had to pay 35 per cent of any increase in value that they make on Spanish properties as tax. This is compared with just the 15 per cent that Spanish nationals are required to pay by law.

The European Union deemed these laws as unfair, and challenged the rules a few years ago, citing discriminatory reasons. Since the beginning of 2007 the Spanish tax authorities have adjusted the rates for foreigners to be in line with locals at 15 per cent.

Under normal circumstances, a tax challenge would be passed over to the European Courts of Justice (ECJ), but the Spanish court found the initial case put forward by Mr and Mrs Roy so convincing that it immediately ruled in the British couple's favour.

A Spokesperson from the law firm representing the couple said, "Anyone else who believes they have been affected should come forward now with their cases."

Six hundred other British couples have now put cases forward since the ruling.

Source: www.hotproperty.co.uk