Britons who want rebate must act soon

PALMA
NON-resident Britons who sold Spanish properties during the last four years are mulling over whether or not to join a class action against the Spanish Government for having to pay a higher rate of capital gains tax than resident Spaniards.

As reported in yesterday's Bulletin, many Britons could be entitled to a tax rebate of over 10'000 pounds because they were charged 35 percent capital gains tax, while the rate for Spaniards was only 15 percent.

These rules changed in 2007 but those who were charged the higher rate have not been given a rebate.
Spanish firm Costa, Alvarez, Manglano & Associates is now setting up a “a no win, no fee” operation to help people retrieve this money.
Anyone who sold their house before May of 2004 is not entitled to take part, as there is a four-year statute of limitations. Therefore, the closer you sold your property to that date, the quicker you must register. However, those who pay the 100 pounds to register for the claim will have to pay 35 percent of whatever is won in the courts in legal fees.

The Spanish law firm that is taking the case believes that this could be one of the biggest actions of its kind ever taken against the Spanish authorities.

One Briton who bought a house in Spain in 2001 and subsequently sold it on made a profit of almost 70'000 euros. However, 35 percent of this went in tax. If the class action is successful, he stands to receive 5'000 euros for his registration fee of 100 euros.