Sale of permanent residence. Discrimination between residents and non residents

In order to insist on the subject of  the existence of possible tax discimination between  Spanish Residents and Non Residents,  we would like to comment that Spains was also  referred to the EU's Court of Justice for discriminatory rules that prevent non-residents from enjoying the same tax benefits as residents in case of the sale of a Real Estate property.

For Spanish residents, capital gains from the sale of a permanent residence are tax  exempt if the money is used to buy another permanent residence in Spain. However, if a person living in Spain  sells his permanent  residence and buys   a new house in another Member State where he has moved to,  thus changing his status to Spanish non resident, he is taxed on the capital gains made on the sale. If he would have stayed in Spain and bought a new house there,  no tax would have become due. Spanish  non-residents  in this situation end up paying much higher taxes.

This is a violation of the free movement of persons and therefore a breach of the EU Treaties.

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. 
Web: www.nonresidenttaxesinspain.com