CGT on sale of UK home

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CGT on sale of UK home


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Old 27th February 2020, 09:18 PM
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Default CGT on sale of UK home

Wanting to move to Spain from Uk and have been reading about CGT in Spain on sale of Uk property.
To complete the move I would need to sell my Uk property. With Brexit in mind and the need to obtain residence before 31st December 2020, does this mean that CGT will be charged in Spain on the sale of my Uk property and there is no way of delaying residence for tax purposes to avoid this ? Any advice would be appreciated as I may have misunderstood this

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Old 27th February 2020, 09:22 PM
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Spend more than 90 days and less than 183 days in Spain this year and you can become resident without being fiscally tax resident for 2020.

CGT for this year would not be charged and you'd not have to declare it for 2021.

I'm doing exactly this... I am currently selling my house and due to complete in April then a road trip around Europe for a couple of months and arrive in Spain on 6th July

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Old 27th February 2020, 10:20 PM
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Quote:
Originally Posted by Pipeman View Post
Spend more than 90 days and less than 183 days in Spain this year and you can become resident without being fiscally tax resident for 2020.

CGT for this year would not be charged and you'd not have to declare it for 2021.

I'm doing exactly this... I am currently selling my house and due to complete in April then a road trip around Europe for a couple of months and arrive in Spain on 6th July
That’s good to know. It’s just that something I read seemed to imply that I would be resident for tax purposes as soon as I apply for residence which would need to be in 2020 and this would apply to the whole of 2020. And therefore if I sold my Uk home in 2020 would be liable to Spanish CGT. Is this not correct ?

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Old 27th February 2020, 10:26 PM
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Residency and tax (fiscal) residency are different beasts....

If you time it so you arrive with less than 183 days left in the year (I think I worked that as 3rd July, but I'm coming on the 6th July) then any implicit relationship by the Spanish authorities cannot be drawn.

I can see them taking an interest if you arrive in June and later decide to pop back to the UK for a few weeks at Christmas as absence of a temporary nature doesn't "stop the clock".


Last edited by Pipeman; 27th February 2020 at 10:31 PM.
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Old 27th February 2020, 10:34 PM
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Thanks for the info, appreciated

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Old 28th February 2020, 09:00 AM
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Yes, residency & fiscal residency are two different things...

However, in order to maintain that residency you cannot be out of Spain for more than 6 months a year during the first 5 years.

Before Brexit, Brits could come & go at will, & no-one was any the wiser, so fiscal residency could be avoided in a way, even though the 6 months away rule was already in place.

However, once passports are checked every trip, it will be clear if someone is leaving for more than the permitted time, & the residency could be revoked.

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Last edited by xabiaxica; 28th February 2020 at 11:12 AM.
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Old 28th February 2020, 09:29 AM
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As soon as you move your 'home' here, you become fiscally resident.
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Old 28th February 2020, 11:39 AM
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As soon as you move your 'home' here, you become fiscally resident.
Yes I agree

That’s what Blevins Franks and a lot of other professionals say.

The 183 days rule only applies if one does not move to Spain, or does not have their centre of financial activity in spain.
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Old 28th February 2020, 01:29 PM
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Quote:
Originally Posted by baldilocks View Post
As soon as you move your 'home' here, you become fiscally resident.
So this would imply that by selling in the U.K. now and moving to Spain before the end of this year I would be liable to CGT in Spain on the sale of the
Uk home ? Seem to be getting conflicting messages

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Old 28th February 2020, 01:35 PM
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Stevan. I think whilst U.K. is still in the EU if you use the proceeds of the sale to buy a principle home in the EU within two years you avoid CGT.

To save me researching that maybe someone will confirm or otherwise
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Last edited by Juan C; 28th February 2020 at 01:52 PM.
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