Thousands of Britons have been overcharged by as much as 20% in capital gains tax (CGT) by the Spanish Government, according to currency specialists HiFX.
A number of British investors have already begun a legal battle to reclaim their money, with an average claim of £19,000.
According to HiFX, thousands of British non-residents were charged a Spanish non-residents income tax rate of 35%, compared to a 15% rate paid by nationals.
However, HiFX says the tax contravenes European Community Treaty rules on discrimination, and the charges by the Spanish Government were illegal.
Following a publicity campaign by HiFX and Spanish lawyers Costa, Alvarez, Manglano & Associates, over 300 investors have joined forces to request tax rebates, but HiFX says many more were affected.
Mark Bodega, managing director of HiFX, says: “So far more than 300 people have registered to be part of the class action, which is a huge response - but we anticipate there are more than 4,500 British people affected by this, meaning there are still a lot of people who need to come forward to reclaim what is rightfully theirs.”
Bodega says investors who sold Spanish property between June 2004 and December 2006 should consider making their claims quickly.
Those who sold property before June 2004 are already unable to claim as Spanish law only allows claims to be made a maximum of four years after the sale.
The Spanish Government has now changed its CGT charging to a flat rate of 15%, so those selling from 2007 onwards are unaffected.
Investors who may have been affected by the CGT rules should visit www.spanishtaxreclaim.co.uk to register their case.
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