Overseas investment - spanish inheritance tax and law

Could anyone give me an idea of the restrictions and tax payable on the sale of a Spanish property assuming that the owner is an EEC member?

When a sales contract is signed between a buyer and a seller with the assistance of [a qualified] lawyer, usually the buyer pays 10% of the purchase price.

The tax law and restrictions usually affect the reminder of the transaction. The 90% share.

Unless you have been the registered owner of your property for 10 years or more, the buyer has to lodge 5% of the purchase price with the Spanish Tax Authorities.

The Spanish Taxman will assess the amount of [Capital gain] tax you have to pay. If the tax bill is less than the 5% already deposited by the buyer, then you will be repaid the balance. Spanish Tax Offices may take up to a year to return it to you.

Otherwise you will be billed for the amount outstanding. Capital Gains Tax which depends on your residential status, your income (for resident) and how long you've been owning the property.

Whether the owner is an EEC member or not is not what matters. What matters is your residency/non-residency status and if your country of residence (for instance UK) have a double tax treaty which means if you've paid CGT in Spain you won't have to pay again in France.

They are techniques to minimize Spanish Captital Gain Tax but you MUST consult a specialist.

I know a lady who runs a business in Spain who could help point you to the right people.

Regards, Francis

PS:On Wednesday 8th June 2005 at 20:00 British Summer Time, we are hosting a F~r~e~e Teleconference for people who invested in Spain or who own a holiday home in Spain.

During the call, we will allow people to share their tips and discuss their experience whether good or bad. If you’re interested then register as soon as possible.

Only the first 100 people who register will be able to attend.

If you’re not a Spanish Property Investor/Owner but have some real questions about Spanish Property Investment, that’s fine you still can attend.

For more details visit the link below: http://www.bfr-invest.com/spanishpropertycall/01hro.php

Francis,

I disagree with your Post above.

If you are NON RESIDENT in Spain ie. do not holsd a Residence Card then the Notary will withold 5% of the declared sale price. He/She will forward it to the Spanish Tax Office who will assess the Tax due and demmand will be sent to you.

As a NON RESIDENT your Tax rate will be 35%

If you were Resident your Tax Rate will be 15%

Tony