Court Rules Spanish Property Tax Unlawful

Thousands of British property investors are set for a rebate from the Spanish government after a court ruled that one of the taxes levied on them was illegal.

Foreign property buyers were charged a 35 percent ‘non residents’ capital gain tax charge when nationals were paying just 15 percent. A test case was brought forward, and it was found that the higher levy was unlawful meaning all affected property purchasers will now be given a rebate with six percent interest.

The case was brought to court by a pair of retired Brits, Alan Roy and his wife Margaret. It is believed that the Spanish tax exchequer has made around 350 million from the tax from between July 2004 and December 2005.

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