Over 65 and selling my family home . The risk of loosing the claim of 100% exemption on Capital gains tax by doing things wrong.
Question.
I am English, resident in Spain , married, of 70 years of age and purchased a property 20 years ago in Mojacar in my name only. My intention was to sell and claim the 100% exemption from capital gains tax on the basis that I am selling my main home and am over 65 .The other day at the notary I was told I could not achieve this withoght signature of my husband on the deed of sale. My solicitor had not told me this and my husband is not in Spain. What is happening as I understand that I could sell withoght my husband.
Answer:
(the original question was much longer with a lot more detail and involving other matters also ).
In Spain if you are English and have purchased a property on your own you are allowed to sell the property on your own also , but you must state on the deed to be able to do so that the property is not your main family home (this is the norm and is automatically written into deed with just one spouse selling) as otherwise the notary will ask for the signature of the spouse (this is because spouse can have certain claims over the family home and the notary requires the signature to cover himself).
You our or your solicitor had obviously mentioned to the notary that your intention was to claim the 100% exemption based on the fact that you where selling your main home and where over 65. The notary was concerned that placing the standard clause in which you manifest it is not your main family home (necessary for you to sign withoght your husband) would compromise your position with the tax office with regards to the claim of the the exemption for being over 65 which you would only be entitled to if you are selling your main home.
The notary is absolutely correct and it is lucky that he detected this and mentioned this to you before you signed (as this is not his job as it is in fact your solicitor that should have had this covered) as signing the clause would have made the claim of the exemption close to impossible.
