Capital Gains Tax on Fuerteventura

[beachlife]

I am getting mixed messages regarding CGT on Fuerteventura.

My lawyer says there is no CGT to pay when selling here just the municipal capital gains tax she says there is no national capital gains tax.

She states that you pay the plusvalia & 3% of the sale price for a non-resident.

I thought you paid the difference between the purchase and selling prices. Then you could subtract estate agent fees, lawyer fees, notary fees, and registration fees.

So is my solicitor right or am I right?

I would appreciate advice from anyone who has been through the process of selling.

[Cotillo_Tom]

Resident or non-resident?

It affects the answer.

Tom.

[beachlife]

Non Resident Irish citizen.

Complicated by the fact that the title deeds have both my name & my wife`s name (50% each). I am a European citizen, so it seems I would pay 19%. My wife is a UK citizen so it would appear she would pay at a rate of 23% on her share of the property.

I am aware that the Canaries sometimes do not have the same rules as mainland Spain. The advice from the estate agent seems to be different from the solicitor.

[Cotillo_Tom]

Suggest you speak with an accountant.

I use Eduardo at Servicios Financieros Herbania SL.
928 85 13 97
Contabilidad5@asesoria-sfh.es

Tom.

[beachlife]

Thanks Tom.

I know a tax specialist in Corralejo.

Will wait till the solicitor goes to the notary to complete the sale & see if any CGT is applied, other than the 3% retention fee.

I thought I might require a specialist tax advisor. I had assumed that all solicitors would be familiar with the process & deal with the CGT if required.

[Cotillo_Tom]

I suggest you ask now, that way you will know what to expect, rather than being hit by an unexpected bill. Our solicitor recommended Eduardo to us - he has been brilliant in his advice. There is a fine line between tax avoidance (legal) and tax evasion (illegal) and he knows that very fine line!!

Tom.