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Owed tax in Spain
I sold my house there last December.
I was told that I was owed tax on it within 3 months.
I have not had any papers saying I have sold the house from my solicitor and now he is ignoring me when I asked about the tax situation.
I am at a loss what to do.
Can anyone help me ?
I was told that I was owed tax on it within 3 months.
I have not had any papers saying I have sold the house from my solicitor and now he is ignoring me when I asked about the tax situation.
I am at a loss what to do.
Can anyone help me ?
Answers
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You are probably going to have to engage a professional in the UK or Spain to advise you.
It is my understanding that if you were a non-resident of Spain, you are due to pay CGT at a rate of 19% on the difference between what you sold at and what price you bought at, but that a small percentage of the original selling price is put aside at date of original purchase (3%??) against this future tax liability. This is partly why the purchasing fees for buying in Spain are so high.
Are you saying that all you have received is money from the sale via your solicitor with absolutely no statement about the values and fees incurred in the transaction? Sounds very odd to me.
It is my understanding that if you were a non-resident of Spain, you are due to pay CGT at a rate of 19% on the difference between what you sold at and what price you bought at, but that a small percentage of the original selling price is put aside at date of original purchase (3%??) against this future tax liability. This is partly why the purchasing fees for buying in Spain are so high.
Are you saying that all you have received is money from the sale via your solicitor with absolutely no statement about the values and fees incurred in the transaction? Sounds very odd to me.
Hi
I had used this solicitor all the time I lived there for this and that , over 2 year.
The house sold when I came back to the UK to live.
I received all monies bar this tax money, at a greatly reduced price than when I bought it, but still no papers to say I have sold the house.
He told me they owed me in the region of 3000 euro and I should leave my bank account open until it was deposited there.
He did send me email, with the costs laid out to see.
I had used this solicitor all the time I lived there for this and that , over 2 year.
The house sold when I came back to the UK to live.
I received all monies bar this tax money, at a greatly reduced price than when I bought it, but still no papers to say I have sold the house.
He told me they owed me in the region of 3000 euro and I should leave my bank account open until it was deposited there.
He did send me email, with the costs laid out to see.
I'm afraid I cannot throw any light on this. If you lived in the property in Spain throughout, and didn't make a 'profit' on it when you sold it (versus the original purchase price) then you are not liable to pay any capital gains tax (CGT) - which is what I assumed you were wanting to know about.
There are various taxes that non-residents of Spanish property have to pay - but you say you lived in the property. Unless you rented part of it out as well?
The only other 'tax' on property that I am aware of is the equivalent of council tax (Impuesto sobre Bienes Inmuebles, or IBI), but if you have been living in the property you should have been paying that throughout the ownership.
Sounds like your lawyer is pulling a fast one through relying on you not knowing the tax situation.
There are various taxes that non-residents of Spanish property have to pay - but you say you lived in the property. Unless you rented part of it out as well?
The only other 'tax' on property that I am aware of is the equivalent of council tax (Impuesto sobre Bienes Inmuebles, or IBI), but if you have been living in the property you should have been paying that throughout the ownership.
Sounds like your lawyer is pulling a fast one through relying on you not knowing the tax situation.
Quote from my solicitor...........we have check in the spanish tax agency with your residence card and although you have the residence card you are not in-rolled as spanish tax payer...so in the end the buyer sholud make the retention of the 3%,
as you have not won money with the purchase and sale of the house... probably in two months´time we will be able to give you back the money from the spanish tax agency...but it will be the spanish hacienda who will have to give you the money back
as you have not won money with the purchase and sale of the house... probably in two months´time we will be able to give you back the money from the spanish tax agency...but it will be the spanish hacienda who will have to give you the money back
Hmm, first necessary to make a translation of pigeon-English.
By 'winning money' your solicitor probably means that he recognises that you have not made a capital gain on the sale - and so your retained 3% will eventually be returned by the hacienda - the Town Hall, I assume - once they have realised that you have not made a capital gain.
In the first part of the letter to you, I think your solicitor is stating that under the rules by which the Spanish operate, you have to be both resident in Spain (you were) AND be registered to pay Spanish income tax, which it seems you were not.
I don't know this for sure, but it is very likely that in that case, the 'rules' by which land transactions occur in Spain mean that the buyer has to retain the 3% and pay it over to the hacienda if the seller cannot demonstrate he/she is both a resdient and an income tax payer - a measure to avoid fraud, I imagine.
I now think that you will eventually get the money back - the wheels of Spanish bureaucracy grind even slower than the UK.
By 'winning money' your solicitor probably means that he recognises that you have not made a capital gain on the sale - and so your retained 3% will eventually be returned by the hacienda - the Town Hall, I assume - once they have realised that you have not made a capital gain.
In the first part of the letter to you, I think your solicitor is stating that under the rules by which the Spanish operate, you have to be both resident in Spain (you were) AND be registered to pay Spanish income tax, which it seems you were not.
I don't know this for sure, but it is very likely that in that case, the 'rules' by which land transactions occur in Spain mean that the buyer has to retain the 3% and pay it over to the hacienda if the seller cannot demonstrate he/she is both a resdient and an income tax payer - a measure to avoid fraud, I imagine.
I now think that you will eventually get the money back - the wheels of Spanish bureaucracy grind even slower than the UK.
Yes I believe I will get back, but how will this happen ?
My solicitor along with my bank don't answer any of my requests and queries and do not follow my instructions , now I have left the country.
It is appalling.
The solicitor owes me 30 euro , out of the money I gave him for the power of attourny, as well.
My solicitor along with my bank don't answer any of my requests and queries and do not follow my instructions , now I have left the country.
It is appalling.
The solicitor owes me 30 euro , out of the money I gave him for the power of attourny, as well.
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