Spanish property tax victory for Britons

Investors in Spanish property are set to gain after a court ruling declared that it is illegal for foreign owners of homes to be charged higher rates of capital gains tax than nationals.

Until now, the law in Spain has decreed that property owners from abroad have had to pay the tax at 35 per cent, compared with 15 per cent for Spaniards.

However, the court declared that this was discriminatory under European Union law.

Many Britons and other overseas investors will be entitled to compensation from the Spanish government, while those investing now will be able to do so knowing that will have less to pay if and when they do sell on their asset.

Those investing in Spain may find it cheaper to do so with a euro mortgage after last week's cut to the main euro interest rate from two per cent to 1.5 per cent.
 

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