 Thousands of foreigners who sold property in Spain in the past few years could be due a tax rebate worth several thousand Euros.If, as a non Spanish national, you sold a property in Spain between 2004 and the end of 2006 you could be entitled to reclaim thousands of Euros from the Spanish Government in overpaid Capital Gains Tax.
Spanish legal and property experts claim that many sellers paid too much capital gains tax when they sold their property, because Spanish tax law penalised foreign property owners by charging them 35% CGT compared to the 15% that Spanish nationals were charged. The European Commission decreed that this 20% differential contravened European Community Treaty discrimination rules and the law was subsequently amended in January 2007; under the new regulations both Spanish nationals and foreigners must now pay 18% on their capital gain.As a result of the change in law, lawyers in Spain are now pursuing legal action in order to force the Spanish government to pay compensation to those affected.They are currently engaging in a class action to obtain refunds of the 20% differential plus approximately 6% per annum interest on the original amount paid.There are certain criteria that one must meet to join in the action, which are: * The Spanish property was sold between the beginning of 2004 and the end of 2006. * The seller was not officially resident in Spain when it was sold. * Capital Gain Tax was paid to the Spanish Authorities. * The Spanish property was sold by an individual not a company.For more information on making a claim click here.
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