Spain CGT on an illegal build?

Hi everyone.

We are renting a house in Andalucia which is currently illegal.  It is undergoing legalisation through the Junta at which point the landlord will want to sell.

1) He was left the house in a will by a friend so paid nothing for as a non-resident we believe he will be facing 19% Spanish Capital Gains Tax of the full sale value of the house when it sells.  Is this correct?

2) So if he sold BEFORE it becomes legal would he have to pay CGT at all?  Also would he have to pay any of the other taxes related to a house sale?  Afterall, legally, there is no house.

The reason we ask is that we may be inclined to make a cheeky offer before legalisation, taking all of this into account.  Is there a danger WE could become liable for the CGT etc in the future?

Don't worry we would certainly be seeking full financial and legal advice if we proceeded, we are just testing the water.



I am not sure that we who subscribe here can realistically answer your questions.  The questions are relatively obscure affecting few people thus most on us will not have had personal or relatively personal experience

Although you say you will take proper advice I would suggest you do that now if you really need to know   Other than that I suspect the best you will get here are enthusiastic guesses

Go to the Spanish tax office with a written question. Get a written answer, signed and stamped. Possibly take your deck chair, flask and sandwich box. It is unlikely you will get the answers you are hoping for. Prostitutes pay tax in Spain.

Don't pay for meal ticket advice.

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