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Reclaiming of tax

Posted: Fri Oct 23, 2020 10:25pm
13 replies748 views6 members subscribed
Jan57

Posts: 144

40 helpful points

Location: La Zenia

Joined: 2 Feb 2017

We sold our apartment in February and paid   3750€ in tax (3%), am I correct in thinking that we can claim part of this back and if so how do we do this? Our lawyer has not been very helpful. TIA.

Christina92

Posted: Sat Oct 24, 2020 4:39pm

Posts: 51

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Location: Gran Alacant

Joined: 18 Oct 2020

Posted: Sat Oct 24, 2020 4:39pm

I believe if the property is around the same price, that you have bought, you can claim the tax back . 

I’m not 100% 

Jan57

Posted: Sat Oct 24, 2020 6:11pm

Jan57

Original Poster

Posts: 144

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Location: La Zenia

Joined: 2 Feb 2017

Posted: Sat Oct 24, 2020 6:11pm

Christina92 wrote on Sat Oct 24, 2020 4:39pm:

I believe if the property is around the same price, that you have bought, you can claim the tax back . 

I’m not 100% 

Thank you for your reply , we did not buy another property we returned home to the uk. We sold for less than what we originally paid and made a substantial lost when you take in account legal fees etc.

killjoy

Posted: Sat Oct 24, 2020 7:03pm

killjoy

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Posted: Sat Oct 24, 2020 7:03pm

A lawyer can only aks a tax advisor. What you need is an "asesor fiscal" who also will do all the paperwork if there is anything to claim. His fes are reasonable.

paulsav

Posted: Sat Oct 24, 2020 7:37pm

paulsav

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Joined: 4 Dec 2015

Posted: Sat Oct 24, 2020 7:37pm

Jan57 wrote on Sat Oct 24, 2020 6:11pm:

Thank you for your reply , we did not buy another property we returned home to the uk. We sold for less than what we originally paid and made a substantial lost when you take in account legal fees etc.

I believe you have a limited time to apply for it. We lost 3000€ in 2010, like you made a big loss(36k€) as we didn't use a solicitor because our estate agent said we didn't need to, so he did all work. He told us it might take a year, and we constantly emailed, then 6 months later phoned his office to be told he, d done a runner with buyers deposits too. Big write up in Costa Blanca News so we thought he,d never paid it to the taxman and kept it. Years later found out it, s the buyers solicitor who retains it for tax so we tried to contact them but found we,d left it too late. Good luck cos I believe(from what I, ve read recently) it's months not years. 

Regards 

Pauline 

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Kimmy11

Posted: Sun Oct 25, 2020 12:35am

Kimmy11

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Posted: Sun Oct 25, 2020 12:35am

Hi Jan,

You're talking about the Non-resident 3% retention.  This amount is retained by the buyers of your property (usually their lawyer) and has to be paid to the AEAT (Spanish tax office).  Your own representative should then claim it back on your behalf, but note that it can take as long as a year to receive the refund.  How much refund you receive will depend on whether you owe any taxes, which the AEAT will deduct before refunding the balance.

Kind regards  

Kim

Jan57

Posted: Sun Oct 25, 2020 10:12am

Jan57

Original Poster

Posts: 144

40 helpful points

Location: La Zenia

Joined: 2 Feb 2017

Posted: Sun Oct 25, 2020 10:12am

Kimmy11 wrote on Sun Oct 25, 2020 12:35am:

Hi Jan,

You're talking about the Non-resident 3% retention.  This amount is retained by the buyers of your property (usually their lawyer) and has to be paid to the AEAT (Spanish tax office).  Your own representative should then claim it back on your behalf, but note that it can take as long as...

... a year to receive the refund.  How much refund you receive will depend on whether you owe any taxes, which the AEAT will deduct before refunding the balance.

Kind regards  

Kim

Hello Kim, thank you again for your help, I will contact our lawyer as he was also the buyers lawyer, all done via estate agent , unfortunately after the sale he has been difficult to contact. Lesson learnt never use estate agents lawyer. 

Delilah

Posted: Sun Oct 25, 2020 8:31pm

Posts: 32

33 helpful points

Location: Torrevieja

Joined: 16 Jul 2020

Posted: Sun Oct 25, 2020 8:31pm

You can claim back the 3% tax only if you had sold for less than what you have purchased for. The application must be submitted to the AEAT the latest 3 months after the sale has been completed at the notary. If you submit the application later, AEAT will charge you with a penalty for late submission.

I agree with Kim, that refund can take time tto get through and that the amount to receive depends wether you owe any tax or not.

Jan57

Posted: Sun Oct 25, 2020 8:45pm

Jan57

Original Poster

Posts: 144

40 helpful points

Location: La Zenia

Joined: 2 Feb 2017

Posted: Sun Oct 25, 2020 8:45pm

Delilah wrote on Sun Oct 25, 2020 8:31pm:

You can claim back the 3% tax only if you had sold for less than what you have purchased for. The application must be submitted to the AEAT the latest 3 months after the sale has been completed at the notary. If you submit the application later, AEAT will charge you with a penalty for late submis...

...sion.

I agree with Kim, that refund can take time tto get through and that the amount to receive depends wether you owe any tax or not.

Delilah, thank you for reply , we bought for 128.5K plus legal fees, we sold for 125K minus legal fees. Are you saying our lawyer should have automatically claimed money back on our behalf within three months of sale, he never mentioned anything about this, are we now too late ?

paulsav

Posted: Sun Oct 25, 2020 9:54pm

paulsav

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Posts: 1366

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Posted: Sun Oct 25, 2020 9:54pm

Jan57 wrote on Sun Oct 25, 2020 8:45pm:

Delilah, thank you for reply , we bought for 128.5K plus legal fees, we sold for 125K minus legal fees. Are you saying our lawyer should have automatically claimed money back on our behalf within three months of sale, he never mentioned anything about this, are we now too late ?

That was what we were told as I said earlier, but we only found out several years later as we thought estate agent must has stolen the money. 

Regards 

Pauline 

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