photo credit: kozumel

If you’ve previously owned in Spain and sold your property between March 2004 and December 2006, you could be owed a 20% tax rebate. That’s the claim made by Spanish lawyers, Costa, Alvarez, Manglano & Associates (CAM&A) and currency exchange brokers HiFX who exposed a Spanish Government Capital Gains Tax scam last week.

CAM&A and HiFX revealed that non-Spaniards who sold their properties in Spain between March 2004 and December 2006 were charged an income tax rate of 35% on any capital gains. In contrast, Spanish nationals paid only 15%.

The two organisations say this excessive charge contravenes the European Community Treaty rules on discrimination and the Spanish Government should not have made the charge. As non-residents paid 20% over the normal limit, this equates to a total profit in the region of £37m.

It is not known exactly how many sellers are affected by the over-payment, as the Spanish Government are reluctant to reveal exact figures, but as Reuters reports,  estimates suggest about 4,500 British people could be eligible for a tax rebate in addition to residents in the other countries.

Emilio Alvarez, one of the Spanish lawyers, said, “Anyone who has sold a Spanish property between March 2004 and December 2006 will have been victim to this inflated capital gains tax (CGT) rate, which saw non-residents scammed into paying inflated CGT bills by as much as 20%. This tax trap is thought to have affected hundreds of thousands of people across Europe and in the UK.”

According to Emilio, a change in the law came into force in January 2007, which saw the capital gains tax for non-residents reduced from 35% to 15%, but it went largely unnoticed. “As a result, thousands of people who’d previously sold property in Spain are entitled to a 20% rebate, thought to average at £11,000 each including interest.”

Unfortunately, anyone who sold property prior to January 2004 has already missed the chance to claim back their tax money, as claims can only be made dating back four years.

HiFX and CAM&A are keen for all Brits affected by this scam to come forward. If you think you’ve been affected, you can find out more details on the Spanish Tax Reclaim website or by calling their helpline on 0845 680 3849.

Technorati Tags: Spanish tax rebate, capital gains tax, Spain Property, Spain real estate, Spanish tax scam, real estate, real-estate, real estate news, overseas property

photo credit: ezioman

As property every investor worth their salt knows, location is an extremely important factor when purchasing real estate. In fact, properties with excellent locations will continue to sell even during times of less than desirable real estate market conditions. That said, lakefront property continues to be popular among both individuals and investors at all times.

Why is lakefront property so popular?

Well, lakefront property is popular for a wide variety of reasons. First and foremost, lakefront property is sought after for purely investments reasons. Why? Lakefront properties are after all a finite resource. Once these properties are sold, there are fewer and fewer available to purchase. As a result of a simple case of supply and demand, more people wish to own lakefront properties than there are lakefront properties available and so, the price of lakeshore property can increase quite substantially.

Of course, lakefront properties are also popular for the more obvious reasons too - people simply love to be near the water, admire the view and enjoy nature. A lakefront property offers a myriad of possibilities, that can include swimming, boating, waterskiing, fishing and more. Further, buying a waterfront property ensures that your family will have a place to enjoy quality time together - both in the near future and for generations to come.

New UK lakefront property development

The Birmingham Post recently reported that a development called The Lakes by real estate giant Yoo is selling its units off plan. These luxury homes, themselves, are located in the southern Cotswolds, between Lechlade and Fairford and start at 750,000 pounds.

In all, 160 detached homes, a hotel, and a spa are to be built in this area, with 48 four-bedroom houses around four lakes making up the first phase of this ambitious project. Thirty of these homes have already sold off plan and construction of the first twenty houses is already well under way and is expected to be completed between the summer of 2008 and early 2009.

John Hitchcox, one of the development’s founders, had the following to say about this particular development - as told to the Birmingham News:

We want to create an environment where nature and the best of contemporary design work in partnership allowing our purchasers to experience this incredible rural setting without disturbing or damaging it.

By collaborating with experts in rural matters, we are helping to preserve the landscape and encouraging wildlife here.

We are designing an environment which is both ecologically sound and breathtakingly beautiful, not just managed by gardeners but by conservationists and ecologists too.

In all, this project looks to be a promising investment for those people who love nature and can afford this type of lakefront property.

Technorati Tags: UK property, UK real estate, Yoo by Stark, lakefront property, real estate, real-estate, real estate news, off plan property, off plan, property investment, real estate investment, overseas property