British expats who paid out more tax than was necessary when selling their Spanish property could be in line for a substantial refund, according to Currencies Direct.

Anyone who sold their property before 2007 could be eligible for a refund as Spain has scrapped a discriminatory Spanish tax law.

Mark O’Sullivan, director of dealing at Currencies Direct, said: “With a weakening pound and a steady euro, this welcome tax refund can be maximised by British expats who can make a claim and exchange their money as soon as possible.

“When yearly interest is taken into consideration on property sold as long ago as 1997, we are talking about considerable sums of money. It will be great for expats to get their cash back, but even better if they can use the current exchange rate to their advantage and get the most from their unexpected windfall.”

Capital gains tax which was paid before 31st December 2006 was charged at a non-residents rate of 35%, compared to just 15% for Spanish residents. However the Spanish Government were forced to change the law in 2007, after the EU declared it discriminatory, but an estimated 10,000 British expats had already overpaid so are eligible for a refund.

The claims deadline for those who sold property between 1st January 1997 and 31st December 2006 has been set for 21st November 2010, under a one year statute of limitation.