Spain CGT on an illegal build?

Dazbear New member

Member since 14 July 2017

DazbearNew member31 October 2018 11:40:51

Hi everyone.

We are renting a house in Andalucia which is currently illegal.聽 It is undergoing legalisation through the Junta at which point the landlord will want to sell.

1) He was left the house in a will by a friend so paid nothing for it....so as a non-resident we believe he will be facing 19% Spanish Capital Gains Tax of the full sale value of the house when it sells.聽 Is this correct?

2) So if he sold BEFORE it becomes legal would he have to pay CGT at all?聽 Also would he have to pay any of the other taxes related to a house sale?聽 Afterall, legally, there is no house.

The reason we ask is that we may be inclined to make a cheeky offer before legalisation, taking all of this into account.聽 Is there a danger WE could become liable for the CGT etc in the future?

Don't worry we would certainly be seeking full financial and legal advice if we proceeded, we are just testing the water.

Thanks

D

Johncar Spain Expert

Member since 25 November 2013

JohncarSpain Expert31 October 2018 11:53:20

1412

I am not sure that we who subscribe here can realistically answer your questions.聽 The questions are relatively obscure affecting few people thus most on us will not have had personal or relatively personal experience

Although you say you will take proper advice I would suggest you do that now if you really need to know聽聽Other than that I suspect the best you will get here are enthusiastic guesses

LegalEagle Guest

LegalEagleGuest31 October 2018 15:53:42

Go to the Spanish tax office with a written question. Get a written answer, signed and stamped. Possibly take your deck chair, flask and sandwich box. It is unlikely you will get the answers you are hoping for. Prostitutes pay tax in Spain.

Don't pay for meal ticket advice.