3% Tax Retention on House Sale

[alfie]

WWW - well said! Why do not people accept that Sapin is not the UK - and as anywhere else in the world 'caveat emptor'.

[WhoWhatWhere?]

This thread appears to be an absolute abomination of misinformation (except for Gus).

1 -  A forum is no place to try and garner financial advice from anyone. Everyone's circumstances are individual. If you want to know what your tax liabilities will be/could be, any exceptions due to age etc. then go to a gestoria/accountant and get the full picture.

2 - I am not aware of the retention EVER being 2.5%. It used to be 5% until a few years back. It could have been 2.5% of the total price if only one of two vendors was not fiscally resident, but this is still 5% of theiir 50% share.

3 - People need to take responsibility for their own lives. "Your estate agent should have warned you about this" is nonsense. Since when has it been part of an agents remit to give financial/tax advice? If I was an agent, I would advise people to go and see a lawyer and/or accountant before putting their house up for sale in the amazing scenario that they lacked the intelligence to think of this themselves.

4 - "You will have to be very fortunate to make a profit on a sale" - All taxes will be due on any "on-paper" profit. Plenty of people under-declared and made cash payments so in reality may only have declared half of the actual price and declared to have paid say €100,000. They then sell for €120,000. Under-declaring doesn't really happen any more so they have made an on-paper profit of €20,000 although in reality they may have made a loss of say €80,000.

5 - Sue the term is "guiris" with an "r". After 10 years...

6 - "Do the Spanish even know what legal is?... Leave estate agents and solicitors out of the loop and you could save yourself time and money". It is exactly this kind of attitude that left people up the creek without the proverbial. The arrogance of thinking that they know best, that all the so called professionals are useless, because they're not exactly the same here as they are in the UK.

I honestly despair of people sometimes.

[flimflam]

Let's face it folks - do the Spanish know anything about anything relating to legal stuff - they are so used to do everything illegally - that they've forgotten what legal is!!!!  But then they're not much better in the u.k. - look at the bankers - what a load of banditos they are !!!!! I don't envy anyone either wanting to buy or sell a house at the moment.  At least having all the paperwork for a property is a start - and maybe you might be better off leaving estate agents and solicitors out of the loop and dealing with the sellar direct!!!  You could save yourself a lot of time and money!!!!  Plus - you will actually have less chance at being 'ripped off'!!!!

[sueegner]

Although I have been a fiscal resident for almost 10 years and working / paying my taxes. I still get different accounts of what is to be paid to whom, when, and at what percentage, and what is re-claimable and when, if selling my property in Spain, not re-buying another property, (only renting). After all these years of living happily in Spain, still I get  several different answers. Does anyone out there REALLY understand the correct (legal) and undisputable costs involved? Most folk are guided by other folk's experiences, but there comes a time when the quaintness and vaigiaries of the spanish system need to be put on a reliable basis. Part of the charm of living in Spain I suppose is the "manana" attitude to just about all things, but in reality, "let's fleece the guidies"(apologies for the spelling, pronounced geedies) (a derogatory term for all persons non-spanish, especially the english!) rules!!! I find the majority of the Spanish peoples are honest and true, but in the case of the "taxes" the rules are fairly flexible! The simple question: what taxes, paid to whom, at what percentage, of either, total selling price of property, or declared value of property and / land is the correct amount so that I will not be harassed at a later date for payment. All comments will be considered (not rude ones!) I stress at this point that all paperwork and building licences on my property are correct and in order at the time of posting this request. (Huercal-Overa) all taxes and hacienda costs have ben paid 5 years ago and all taxes/payments up to date. All I intend to do is abide by the current Spanish law and rules in all I do, and this is proving to be very difficult if no one impartially knows how to do it !
All comments appreciated, either positive or negative.
I am under 65 years if age, currently working in Spain, and paying into the system on a contractual employed basis.
thankyou
Sue Egner
If you need to reply anonymously
sue_egner@live.co.uk or mob: 620400535.
or mob. phone 620400535

[Tim1]

Yes. Your estate agent should have warned you about this.

[Rod]

You will have to be very fortunate to make any gain at all on a house sale.

[SusyQ]

Gus - are you still subject to 18 percent capital gains tax if you over 65 and resident in Spain and how long do you have to be a fiscal resident to avoid CGT.

[gus-lopez]

You have 30 days to apply for re-payment. You'll still get it back if you apply late but will be fined !   :rofl:

The actual reason it was changed was that the resident / spanish national rate was 15 % & for non-residents , 35% . The eu declared this illegal & the arrangement that the hacienda came up with was 18%  CGT ,for everyone. The 3% , is the averaged amount that is paid by most people. The actual tax is 18% . If , for example, you bought for 50k & sell for 100k the retencion is 3k but assuming there are no expenses/improvements , etc ; the actual tax due is 50k x 18% = 9k. These days they'll come looking for the other 6k!

It used to be repaid within 6 weeks of the june declaration , but that was when they had money !  :lol:

[optomist]

Used to be 2.5% the buyer had to hold back and pay it to the tax men when the seller was None Resident .They decided  that as so many Non Residents sellers took their money and left that they wouldn't get the Capital Gains Tax from they so they held back this sum . We had to do that some years ago on a property we bought . If i remember correctly there was a time frame in which you had at that time to reclaim any overpayment .

[terina]

sorry to tell you but we had to wait for 2 years to get it back -  we did get a little interest as well

[JIM1939]

We have just sold our house and 3% of the sale price was paid to the Spanish Tax authorities "in case we owe any tax"  I asked my solicitor when this would be calculated and we receive our money back and our solicitor has told us that  "Spain does not money so it could take at least a year" :head :head :head
Has anyone heard of this before? Can anyone help?