Question property abroad - Page 2

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Question property abroad - Page 2


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  #11 (permalink)  
Old 11th January 2014, 01:30 PM
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When did you become a Spanish resident? Spain shouldn't be using the purchase price unless you were Spanish at the time. You should be taxed on the increase since becoming Spanish.
NickZ I'm not sure that's correct. Can you pint me to the source of your information.

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  #12 (permalink)  
Old 11th January 2014, 03:05 PM
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He should have had a deemed disposition when he left his previous country. Paying any due taxes then.

I'll try and look things up but it would be strange for Spain to tax him on a gain that didn't happen while he was a Spanish tax resident. All that does is encourage people to sell everything and buy it back.

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Old 11th January 2014, 03:50 PM
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http://www.pwc.com/en_US/us/tax-serv...h-exit-tax.pdf

That's the nearest thing I could find on Spain. Maybe somebody could search in Spanish.

Under that law Spain was charging capital gains on people leaving Spain. Even if the asset wasn't sold. Basically declaring a deemed disposition. It would be strange if the same principle didn't apply to people entering Spain.

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  #14 (permalink)  
Old 11th January 2014, 03:56 PM
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Quote:
Originally Posted by NickZ View Post
http://www.pwc.com/en_US/us/tax-serv...h-exit-tax.pdf

That's the nearest thing I could find on Spain. Maybe somebody could search in Spanish.

Under that law Spain was charging capital gains on people leaving Spain. Even if the asset wasn't sold. Basically declaring a deemed disposition. It would be strange if the same principle didn't apply to people entering Spain.
if you're moving to Spain & sell a property before you move here & become fiscally resident in Spain, then Spain cannot charge you any CGT - simple


you would of course have to pay anything due in the country in which you were fiscally resident at the time of the sale

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Old 11th January 2014, 05:21 PM
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Yes but it's not unusual for a country to consider something sold when you leave the country. Even if you don't sell the property. The law in the link I posted was basically that. Spain considers the property sold if you stop being a tax resident.

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Old 11th January 2014, 06:37 PM
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Yes, but the link you have posted to relates to corporate assets, not personal. On that basis, someone who returned to the UK would have to pay capital gains at the time they left, and that is not the case, nor do they have to when they leave the UK. That's not to say there won't be any capital gains due in the other country, which under the DTA can be offset.

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Old 12th January 2014, 04:40 AM
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https://www.kpmg.com/US/en/IssuesAnd...12-150-aug.pdf

Here individuals.

It did tax unrealized gains on leaving Spain. What the court blocked was the requirement to pay for this at the moment of leaving.

Nothing to offset under the treaty. You just get a new cost basis.

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Old 12th January 2014, 06:25 PM
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Quote:
Originally Posted by NickZ View Post
https://www.kpmg.com/US/en/IssuesAnd...12-150-aug.pdf Here individuals. It did tax unrealized gains on leaving Spain. What the court blocked was the requirement to pay for this at the moment of leaving. Nothing to offset under the treaty. You just get a new cost basis.
IInteresting post NickZ, thanks for the link. If you actually read the judgement it's clearly stated by Spain that the law doesn't relate to unrealised capital gains, only to income which has already been realised, so it doesn't apply as far as property is concerned, and in fact, if you think about it, that's logical, because Spain has a system of retention for non-residents anyway. In addition, as I read the tax law, the capital gains on selling property is based on the date of acquisition, there is nothing about the date you entered the country, although, as I said before there may be capital gains in the country of location. As far as the UK is concerned, its the date of disposal, so this would be offset, but may be, and probably is, far less than than Spain charges. I have no idea as far as Austria is concerned.

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Old 16th January 2014, 05:32 PM
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declaration of overseas assets any news on this subject ?

in one of the local free newspapers in Marbella i read
that some lawyers and real estate agents asking to
reform his new laws...since people moving away..for
example to Portugal etc

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