EX-PATS GRAB HOME SALES WINDFALL AFTER TAX CHALLENGE

PALMA
HUNDREDS of ex-pat property owners, who sold their homes in Spain between June 2004 and December 2006, have reclaimed an average of almost 20'000 pounds each following a change in tax regulations.

The alteration in capital gains tax rules following a challenge in the European Court means that Britons and other EU citizens who sold their property during this time could be entitled to a 20 percent rebate from the Spanish government.

The tax loophole was discovered after British non residents paid capital gains tax rate of 35 percent on property sales, compared to a rate of 15 percent paid by Spanish nationals - contravening European rules on discrimination.

It has been estimated that 4'500 British people, plus thousands more residents in other European countries, may now be entitled to reclaim their tax.