Insurance News Archive
British property investors 'overcharged by Spanish government'
Around 200 British property investors are in dispute with the Spanish government amid claims they were overcharged by 20 per cent on the proceeds of transactions.
They are claiming back capital gains tax on the sales of properties between June 2004 and December 2006, which they suggest were subject to being "erroneously overcharged".
It is believed paying a non-residents tax of 35 per cent compared to Spanish citizens paying 15 per cent on their sales contravenes European Community Treaty rules and should not have been charged.
Mark Bodega, director of currency specialists HiFX, said it is "extremely difficult to put an actual figure to put an actual figure on the number of people affected by this tax issue and how much they would be able to reclaim fro the Spanish government".
He added that this is because the Spanish government will not reveal the information and said its estimations of how much could be reclaimed may be "on the conservative side".
Property investors have, meanwhile, been advised to wait a year before buying in Spain.
A spokesman at the Spanish Property Owners Guild said values will fall this year and should continue to do so in 2009.
20 Jun 2008
