For British Expats who are living in Spain, there will be many questions about how Stamp Duty rates affect them.
Your Solicitor will usually deal with the official filing of the Stamp Duty return, but the liability is on you as an individual to pay the correct amount of tax.
ADDITIONAL PROPERTY SURCHARGE
If you wish to purchase a property in the UK, and already own property elsewhere in the World (including in the UK or Spain) you will be required to pay an additional 3% Stamp Duty surcharge on the purchase price of that property.
You may be able to claim a refund of this surcharge rate paid if you are purchasing a new main residence and later dispose of your previous main residence within 3 years of your purchase.
NON-UK RESIDENT SURCHARGE
If you have not been in the UK for at least 6 months during the 12 month period before your property purchase, you will be classified as a non-UK resident for the purposes of SDLT. This means that you will be liable to pay an additional 2% surcharge of the purchase price on top of the normal rate of Stamp Duty that you are liable to pay. This could also include the surcharge referred to above if you also already own other property!
If you meet the criteria for a UK resident, but you are purchasing a property with a on-UK resident, you will also be treated as a non-UK resident in relation to Stamp Duty and will still be liable for the additional 2% surcharge.
Stamp Duty Land Tax can become increasingly complicated and while we would always advise you take your own independent tax advice in such matters, the above surcharges are something to be aware of if you are intending to make a purchase of a UK Property.
Please note that this guide is provided by Nockolds Solicitors Limited. Although Nockolds Lawyers Spain S.L. is a subsidiary company of Nockolds Solicitors Limited, it is not authorised or regulated by the Solicitors Regulation Authority.
For further information on official translations, please contact us on (+34) 951 552 254 or complete an online enquiry form, and a member of the team will be in touch.