Windfall for Spain holiday home owners

IRISH people who bought and sold a holiday home in Spain before 2007 could be in for a windfall.

The European Court of Justice ruled that the Spanish government had discriminated against non-nationals and failed to fulfil its EU obligations by charging different rates of capital gains tax to Spanish citizens and foreign residents in the past.

The ruling could leave the Spanish government liable for millions of euro in tax rebates. Any Irish person who sold a holiday home they owned in Spain prior to December 31, 2006, at a profit, may be entitled to a 20% rebate plus interest on the capital gains tax paid at the time.