# Selling a UK house



## tasty12 (Jan 16, 2016)

Good morning
Can anyone give me some advice.
I own a property in Spain(Non Resident)
I have a property in the UK but was thinking of purchasing another in the UK

If I own 2 UK properties and one Spanish property, Am I liable to pay any taxes to the Spanish Government. For any reason i.e. Capital Gains or tax on any income

Sorry this is a bit vague but hard to explain

I understand if I sell my uk house I do not pay capital gains to spain as I only own 1, but what I am worried about is if it is different if I own 2

Many thanks for any information


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## timwip (Feb 27, 2017)

tasty12 said:


> Good morning
> Can anyone give me some advice.
> I own a property in Spain(Non Resident)
> I have a property in the UK but was thinking of purchasing another in the UK
> ...


As a non-resident you will not pay capital gains on the sale of a residence outside of Spain.


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## Overandout (Nov 10, 2012)

tasty12 said:


> If I own 2 UK properties and one Spanish property, Am I liable to pay any taxes to the Spanish Government. For any reason i.e. Capital Gains or tax on any income


Yes, anyone who owns a property in Spain which is not their primary residence, has to pay either the tax on the rental income (if it is rented out) or imputed tax on the value (if it is not rented out). As you are not resident, it will be easy for the AEAT to prove that your Spanish house is not your primary residence.

This has nothing to do with being British or owning properties in other countries however, this is just the tax law in Spain.


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## tasty12 (Jan 16, 2016)

Thank you for your reply


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## tasty12 (Jan 16, 2016)

Thank you for your reply
I do pay imputed tax on my spanish property as not rented out


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## Alcalaina (Aug 6, 2010)

tasty12 said:


> Thank you for your reply
> I do pay imputed tax on my spanish property as not rented out


As a non-resident you aren't liable to CGT in Spain on any property that you sell, wherever it is. You are tax-resident in the UK, so will be governed by British CGT rules.


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## timwip (Feb 27, 2017)

Alcalaina said:


> As a non-resident you aren't liable to CGT in Spain on any property that you sell, wherever it is. You are tax-resident in the UK, so will be governed by British CGT rules.



If a non-resident would sell a property in Spain for a gain, they would need to pay capital gains in Spain. That is why you are required to get a NIE in order to buy a property. Basically, you pay taxes in the country where the money was made. Then if Spain and UK have a tax treaty, you must declare the capital gains in UK but then you can take a deduction for foreign taxes paid in order to avoid double taxation.


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## Roy C (Sep 29, 2012)

I hope you don't mind me adding a question. 
What if you are resident in Spain and sell a UK property to buy another UK property would that attract a tax bill?


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## Lynn R (Feb 21, 2014)

Roy C said:


> I hope you don't mind me adding a question.
> What if you are resident in Spain and sell a UK property to buy another UK property would that attract a tax bill?


As far as I know, the exemption from Spanish CGT if you sell a property and reinvest all of the proceeds in buying another one within two years only applies if the property you sell has been your principal residence for at least 3 years. So if you are tax resident in Spain and sell a property in the UK, that obviously cannot be your principal residence, therefore it would be my view that it would need to be declared for Spanish CGT. But that's only an opinion, you need to ask a professional.


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## Roy C (Sep 29, 2012)

Thanks Lynn, I will, once and if I get the residency next week. I'm guessing it would be better to sell and buy sooner within 6 months than later.


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## Lynn R (Feb 21, 2014)

Roy C said:


> Thanks Lynn, I will, once and if I get the residency next week. I'm guessing it would be better to sell and buy sooner within 6 months than later.


Why six months? If you register as a resident in October, then you will be tax resident for the whole of the 2021 tax year (but not for 2020). It won't only take effect when you have been in Spain for 183 days.


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## trotter58 (Feb 8, 2017)

Roy C said:


> I hope you don't mind me adding a question.
> What if you are resident in Spain and sell a UK property to buy another UK property would that attract a tax bill?


If you are resident in Spain and paying your taxes in spain then you will be liable to pay any CGT to Spain. If you sell your UK property, which is no longer your primary residence, then you will be liable to pay any CGT to Spain. I don't think you can offset the CGT by buying another property in a non EU country.

Another worry is that once you're resident in Spain but still paying tax in the UK, your UK property is no longer your primary residence and you may be liable to pay any CGT to HMRC.

I would recommend that you seek professional advice from a Spanish/UK tax advisor.


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## Roy C (Sep 29, 2012)

Yes, I think I'll seek advice, thanks. It's funny (or not actually)how these governments can always clobber the ordinary working person yet the big tax evaders seem to legitimately get away with it.


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## trotter58 (Feb 8, 2017)

Lynn R said:


> Why six months? If you register as a resident in October, then you will be tax resident for the whole of the 2021 tax year (but not for 2020). It won't only take effect when you have been in Spain for 183 days.


AFAIK If Roy C stays in Spain for less than 183 days then he doesn't become tax resident, even if he has registered as a Spanish resident (assuming that his family & livelihood aren't in Spain). Currently, to stay in Spain for longer than 90 days, UK citizens are required to register as resident. 
https://www.gov.uk/guidance/residency-requirements-in-spain

If Roy C leaves Spain before 183 days and doesn't return within the year then he forfeits his residency and should sign off the padron and return his residency card. In this case he would remain UK tax resident.


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## tasty12 (Jan 16, 2016)

Thank you everyone for replies


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## Lynn R (Feb 21, 2014)

trotter58 said:


> AFAIK If Roy C stays in Spain for less than 183 days then he doesn't become tax resident, even if he has registered as a Spanish resident (assuming that his family & livelihood aren't in Spain). Currently, to stay in Spain for longer than 90 days, UK citizens are required to register as resident.
> https://www.gov.uk/guidance/residency-requirements-in-spain
> 
> If Roy C leaves Spain before 183 days and doesn't return within the year then he forfeits his residency and should sign off the padron and return his residency card. In this case he would remain UK tax resident.


But as Roy has been anxious to secure his rights under the Withdrawal Agreement by registering as a resident before 31 December 2020 (including eventual entitlement to an S1 when he becomes eligible for one) I don't think it likely he would want to deregister as Spanish resident again within 183 days.


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