Selling your property by De Cotta Law
When you are selling property in the Canary Islands or Mainland Spain it is important to get independent legal advice.
There are important obligations on the seller and you should be aware of them. The tax authorities are now much more vigilant and you will not want to be looking over your shoulder once you have sold the property.
It is particularly important to ensure that your funds can be transferred back to the UK or elsewhere having completed all the necessary documentation on leaving.
Leaving the Canary Islands
At the moment a number of people are returning to their country of origin and some of these people have been tax resident in Spain. A Certificate of Fiscal residence will be required if you have been here for some time and this must be obtained prior to the sale. The notary will not accept that you have been tax resident here without this document and you would therefore be subject to a 3% retention on the sale price. This 3% is taken on account from non residents and any additional Capital gains tax should be paid.
A Spanish lawyer can calculate the sum you will receive on the day of the signing of the notary deed and ensure that you are not left with any ongoing liabilities after the sale. If you are not fiscal resident in Spain and the 3% retention has been made on the sale price, your lawyer can present on your behalf your capital gains tax declaration and claim back any exceeding amount that was retained in the sale of the property, if this is applicable in your case.
Prevention is always better than cure and it is best to get advice from experienced property lawyers and accountants particularly when you are selling property. If you keep the property you own in Spain but return to the UK you should also ensure that you have looked at the inheritance tax issue as at present non-residents are paying fairly high levels of inheritance tax on Spanish property. Canary Islands tax residents can take advantage of some tax exemptions so individual advice and calculations are important when deciding on your next steps.
De Cotta Law Open Day
De Cotta Law, the Firm of English Lawyers and Spanish abogados with offices in the Canary Islands and Mainland Spain, are holding an Open Day in Tenerife on Monday 20th May 2013, from 9:30 to 17:00. All legal consultations throughout the day will be completely FREE; to book your private consultation please call our office on 922 719 520 or send an email to firstname.lastname@example.org
Visit De Cotta Law’s offices, opposite The Scotch Corner bar, in San Eugenio, Playa de Las Americas, Adeje and take advantage of a free, private legal consultation.
De Cotta Law – Over 25 Years Experience in Spain – Property & Conveyancing – Spanish Wills and Inheritance – Family law and Divorce – Criminal Litigation – Civil Litigation – Personal Injury – Timeshare and Tourist Law – Commercial Law – Tax.
De Cotta Law
Avda. de los Pueblos Esq. C/ Colón
Parque Residencial Villaflor, Local B-20, 1ª Planta
San Eugenio, Playa de Las Americas
38660 Costa Adeje, Tenerife
Tel.: (00 34) 922 719 520
Fax: (00 34) 922 724 511