Saturday 30 April 2016

Britons Win £2.6 Million in Spanish Holiday Home Tax Fiasco


Britons Win £2.6 Million in Spanish Holiday Home Tax Fiasco


British people who bought Spanish holiday homes have been refunded at least €3.3 million (£2.6 million) in punitive taxes that should never have been charged to them in the first place.
Great news for any one purchasing a holiday home
The overcharging came as a result of Britons being overcharged Inheritance Tax and has led to millions of euros being refunded by the Spanish authorities.
The Barcelona based Spanish Legal Reclaims law firm is also managing a further €7 million worth of claims.
The CEO of Spanish Legal Reclaims says that anyone paid inheritance tax in the last five years are eligible to claim back the tax that they paid. He does warn that it is difficult to do this, however.
He also added that he expects at least €3 million more to be filed in the next few years as more claimants come forward and demand a refund.
There are other law firms who are getting in on the action and helping Britons win back their money after being unfairly charged inheritance tax. The situation is so bad that there are currently no official estimates on how much could be won back.
As Spain is the country where Brits usually buy holiday homes and second properties it’s been estimated that 100,000 people have overpaid a grand total of €300 million in inheritance tax.
Spanish authorities raised inheritance tax and levied it on lifetime gifts. Inheritance tax is paid when someone dies and leaves their home to their family or friends.
In several cases the inheritance tax came to a third of the value of the property and the person who inherited the house would have to pay this within six months of receiving the property.
On the other hand Spanish residents were exempt from up to 99 percent of inheritance tax and paid almost nothing.
It was decided by the European Court of Justice in 2014 that charging people from outside of the country, but still within the EU or a European Economic Area country, more than locals was discriminatory. As a result it demanded that these people should be paid back and even paid back with interest.
The average claim by non-residents is costing the Spanish authorities €30,000. This repayment is also not an automatic thing. Claimants have to file to receive one .
Mr Cuervo, CEO of Spanish Legal Reclaims, said that if a non-resident was charged inheritance tax since 2010 they are eligible to reclaim the tax in Spain. They would need the help of specialised lawyers however as it’s a complex thing to do. There is more than one form to fill in and you need all the help you can get.