Reduction in Capital Gains Tax for non-residents in Spain
Spanish legislation is to change in the coming months to reduce Capital Gains Tax for non-residents from 35% to 18%. There will also be an increase in CGT for residents from 15% to 18%, which was approved by the Spanish Senate in October 2006. Included in the new regulations is the reduction of the withholding provision of 5% to 3% that non-residents pay when selling property in Spain. The new regulations will be enforced at the beginning of January 2007.