A class action lawsuit is filed by 200 Britons against the Spanish government to reclaim money over the property which was sold by them in last four years.
This fight is to reclaim capital gains tax which was wrongly charged over the property sold in Spain between June 2004 and December 2006. According to the sellers they were overcharged by some 20% on the proceeds of transactions. They came to know about this tax loophole after when the British non residents paid a Spanish Non Residents’ Income Tax (NRIT) at the rate of 35% on any capital gains, whereas the rate paid by the Spanish nationals was 15%.
In fact the Britons are all set to add on missing interest at a compound rate of six per cent to their reclaims, which means the payouts could be on average 26 per cent larger than first thought.
This discrepancy was actually exposed by HiFX (Currency Exchange Brokers) and Spanish lawyers, Costa, Alverez, Manglano & Associates. According to Mark Bodega, director of currency specialists HiFX, “As Spanish government will not reveal this information, it becomes extremely difficult to put an actual figure on the number of people affected by this tax issue and how much they would be able to reclaim from the Spanish government”.
But the estimated report shows that the British people has been overly charged of £86 million by the Spanish Government.