Capital Gain for British Familes in Spain? Article Published: 14:39 12/03/2009 Article Classification: Spain
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After a battle lasting more than a year, the first case has been heard by the Spanish courts and a British couple have successfully reclaimed their overpayment paving the way for thousands of other Britons to make similar claims from the Spanish government.

The Spanish Court ruled that this initial case put forward by solicitors Costa, Alvarez, Manglano & Associates was so convincing that there was no need for it to be passed on to the European Courts of Justice which is the usual procedure.

If you sold a property in Spain between July 2004 and the end of 2006 you could also be entitled to reclaim thousands of pounds.

Are you entitled to make a claim?

Between the beginning of 2004 and the end of 2006, UK citizens and other non resident EU citizens paid 35% Capital Gains Tax (CGT), whilst Spanish nationals only paid 15%.

The European Commission has said that this 20% overpayment contravenes European Community Treaty discrimination rules and was therefore charged illegally by the Spanish Government.

As a direct result of this ruling, if you have been affected and can meet the requirements laid out below, you could be entitled to reclaim the 20% CGT overpayment you made in Spain, PLUS approximately 6% interest per annum. It is estimated that the average amount owed to British and other non-Spanish citizens is around £14,000!

Time is of the essence, as claims must be made within four years of a property being sold.

Do you qualify?

To make a claim you must meet the following criteria:

• You sold a Spanish property between July 2004 and December 31 2006.
• You were not officially resident in Spain when you sold it.
• You paid the Capital Gain Tax to the Spanish Authorities.
• You sold your Spanish property as an individual; not as a company

If you think you qualify visit www.spanishtaxreclaim.co.uk or call our Partners HIFX on 0845 680 3849 for more information.