Q. I have received a letter from a Spanish legal firm informing me of a new legal requirement by which I have to renew my NIE number every three months. Is this correct?
A. Although this is a true statement officially made by the National Police Office and reflected in the actual NIE number certificates, the truth is that, in my experience, no public or private institution has ever requested an updated version of it. Therefore, if you are specifically requested to provide an updated NIE number document, please by all means apply for a new certificate. However, we do not recommend that you establish a quarterly renewal schedule for the sake of it, as this is not necessary, and in my opinion, just a way of ‘milking’ unsuspecting people further.
Q. I wish to sell my Spanish property and relocate back to the UK. Do I have to pay Capital Gains Tax on the profit made?
A. If you are a resident in Spain and plan to reinvest the proceeds of the sale of your main residence within two years of being back in the UK, you will get a complete capital gains exemption (provided you reinvest the full amount). If you are resident and over 65, this requirement is not necessary as you will be exempt from capital gains tax anyway when you sell your main residence. But if you are a non-resident your capital tax liability will be 21 per cent of the profit made, regardless of any other circumstances. Please note that non-residents will also have three per cent of the purchase price withheld by the buyer and lodged with the taxman.
Contact Antonio at Lawbird Legal Services
Edificio Alfil Floor 4, Ricardo Soriano, 19 – 4B, 29601 Marbella, Malaga (Spain) Phone: +34 952 861890 – [email protected] – www.lawbird.com