Hi there
3. CGT questions for you:
1. I own a UK property that has doubled in value since I bought it back in 2006. Am I correct in thinking that the calculation for Spanish CGT = sale price - (original price+improvements+outstanding mortgage)? The outstanding mortgage is important to know that this is factored in (to reduce the “profit”) ias I have quite a bit left to pay off that will be paid off with the sale albeit that there will still be CGT to pay due to increase.
2. I am currently renting here in Spain and looking to buy a house here. Am I right in thinking that I can invest the proceeds of the UK house in the Spanish house and thus avoid/minimise CGT? Can the UK house continue to be called my prime residence even though I'm renting temporarily here in Spain while looking to buy a house?
3. Further to point 2, can I buy here in Spain first and then sell later the UK property and still benefit from this relief? I'd need to take out a temporary mortgage here in Spain to part fund the purchase and then use the proceeds from the UK sake to pay it off. I have read there is a period of 2 years before/after sale?.
Many thanks