A landmark court ruling comes as welcome news for up to 10,000 Britons who own properties in Spain, says The Sunday Times.
Alan and Margaret Roy have successfully claimed about £3,000 from the Spanish government after they were charged more than twice the amount of capital gains tax (CGT) as local residents. Lawyers say this "opens the floodgates for claims"; currency specialist HiFX says that at a conservative estimate, Britons are each due £14,100 in overpaid CGT.
The Roys bought a property for e150,000 in 2001. When they sold it three years later for e160,000 they were charged 35% on the gain instead of the Spanish flat rate of 15%. The European Commission ruled last year that this disparity contravened European Union legislation. A Spanish Court has upheld the Roys' claim for a 20% rebate, plus interest. Under Spanish law, there is a "limited window for registering claims", so move fast.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
You may be eligible if you sold a house between mid-2004 and the end of 2006, during which time the 35% tax rate was set. See www.spanishtaxreclaim.co.uk, or call 0845-680 3849.
