Spain CGT on an illegal build?

Last activity 31 October 2018 by LegalEagle

674 Views

2 replies

Post new topic

DazbearNew member31 October 2018 11:40:51

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 it....so 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.

Thanks

D

JohncarSpain expert31 October 2018 11:53:20

1412

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

LegalEagleGuest31 October 2018 15:53:42

214245

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.

Articles to help you in your expat project in Andalusia

Taxes in Spain
If you are a foreigner living in Spain for more than 183 days in a calendar year, you are classed as a resident ...
Paying tax in Spain
UK tax payer – but now living in Spain full time?
Accommodation in Malaga
Malaga is a busy port city on southern Spain's Costa del Sol, a place that blends ancient history with the ...
Working in Malaga
Malaga is the capital of the province of Malaga, a southern Andalusian city by the Mediterranean Sea. Its ...
Accommodation in Seville
Seville is a southern Andalusian city that's easy to fall in love with. The Moorish architecture works of art, ...
Accommodation in Tenerife
Tenerife is the largest and most populous of the seven Canary Islands, a Spanish archipelago in the Atlantic Ocean ...
Accommodation in Valencia
Valencia is the capital of the province of Valencia, a Mediterranean destination of striking architecture, vast ...
Choosing your neighbourhood in Madrid
Location is probably the most important determining factor when purchasing a home. You see, no matter how much you ...