Expats Must Act Now to Claim Through Spanish Tax Rebate

Expats Must Act Now to Claim Through Spanish Tax RebateExpats who paid out too much tax on their Spanish property sale may be entitled to a rebate amounting to thousands of euros, according to leading foreign exchange firm Currencies Direct.

The potential capital gains windfall for British expats who sold property in Spain before 2007 comes after the scrapping of a discriminatory Spanish tax law.

Now with the pound weak against the euro, and the clock ticking on securing refunds, all claims must be filed by 21st November this year. The Currencies Direct experts say there is no time like the present for expats to get their refund and repatriate the money.

Mark O’Sullivan, director of dealing at leading currency exchange firm 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 paid by British expats who sold Spanish property before 31st December 2006 was charged at a ‘non-residents’ rate of 35%, compared to just 15% for Spanish residents.

The Spanish government changed the law in 2007, after the EU declared it discriminatory, but an estimated ten thousand British expats had already overpaid. Now they are entitled to a refund.

The claims deadline for those who sold property between 1st Jan 1997 and 31st December 2006 has been set for 21st November 2010, under a one year statute of limitation.

Dimas Cuesta from Lexland, a law firm that has already secured rebates for British expats, added: “The legal process requires expert advice, which is fundamentally important to the chances of a successful claim. British expats looking to be reimbursed should act now, before the claims deadline.”

Expats who think they have paid too much tax on their Spanish property sale should visit www.spanishpropertytaxrefund.com and use the online tax rebate calculator to see how much they may be owed.

Currencies Direct is one of Europe’s leading non-bank providers of foreign exchange payment services. Since it’s formation in 1996 Currencies Direct has evolved and positioned from being an innovative service provider of foreign exchange for consumers and high net worth individuals into a dynamic and pioneering ‘business to business’ fully integrated treasury solution service provider. Head quartered in the City of London (United Kingdom) with operations in Europe, Africa, Asia and the United States, Currencies Direct is part of the Azibo Group, a privately owned investment company.

Lexland provides legal services to English citizens living in Spain and for Spanish firms in the UK. Legal services for private clients and corporations covering practically all areas of the Law are also available.

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  1. Peter James | Jan 23, 2011 | Reply

    Hello Mark o’sullivan

    As a long term customer who has been with currency dirct for about ten years i was a bit upset when i last phoned up for a large deal on the GBP/EUR pair and the rate i was given by your broker was 2.5% above the exchange rate.

    I contacted another currency broker to find i could get a rate of 0.75 above the mid price and sent yourselves an email to complain but did not get a reply which makes the gurantee worthless.

    When i questioned the broker about this large profit margin he wanted to go on about interest rates might rise in the UK but that has nothing to do with the current spot price and i would like to know how you would like to resolve this isue.

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