British expats who could now be in line for a substantial tax rebate, after possibly paying more tax than was necessary when selling their Spanish home, now have until 21st November 2010 to make an application.
After scrapping the discriminatory Spanish tax law, the Spanish government has set a claims deadline for those who sold property between 1st January 1997 and 31st December 2006 for 21st November 2010, under a one year statute of limitation.
Mark O'Sullivan, director of dealing at Currencies Direct, said: “With a weakening pound and a steady euro, this welcome tax refund can be maximised by British expats who can make a claim and exchange their money as soon as possible.
“When yearly interest is taken into consideration on property sold as long ago as 1997, we are talking about considerable sums of money. It will be great for expats to get their cash back, but even better if they can use the current exchange rate to their advantage and get the most from their unexpected windfall.”
Capital gains tax which was paid before 31st December 2006 was charged at a 'non-residents' rate of 35 per cent, compared to just 15 per cent for Spanish residents. But the Spanish government was forced to amend the law in 2007, after the European Union declared it discriminatory. It is estimated that around 10,000 British expats have overpaid so are eligible for a tax rebate.