Non-resident Spanish property owners who sold their property prior to 2008 may be due a GST tax refund after being unfairly taxed at 35% as opposed to only 15% for residents.
Investigation was sparked by a lawsuit filed against the Spanish tax authorities by an elderly British couple, who felt they had been overcharged on GST upon sale of their holiday home. They had to pay more than twice the amount of tax that a resident would have paid.
As the incident escalated, the European Commission found that to be a discrimination against non-resident EU citizens. After repeated warnings, the Spanish government has amended the law so now the same flat 18% of GST is charged, regardless of seller residency.