Reclaiming of tax - Page 2

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Posted: Sun Oct 25, 2020 10:53pm

Kimmy11

Legendary helpful member

Posts: 6871

12565 helpful points

Location: Formentera Del Segura

Joined: 8 Aug 2017

Posted: Sun Oct 25, 2020 10:53pm

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 ?

Hi Jan,

As I mentioned in my earlier post, your buyer's lawyer will have retained 3% of the sale price. This has to be paid to the tax office within 1 month of the sale, via tax form Modelo 211 - it's a legal requirement when non-residents sell property and if you had owed any CGT (Capital Gains Tax), this would have been paid out of the retention. Within 3 months of the buyer's lawyer submitting the Modelo 211, the seller should claim back the 3% - or any balance after tax deductions - by submission of the Non-resident tax form, Modelo 210.

It's unfortunate that you used the same lawyer as the buyer - despite what the estate agent may have told you, this is a conflict of interest, although that's no excuse for the lawyer failing to make you aware of the timescales.

Kind regards,

Kim

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Posted: Sun Oct 25, 2020 10:59pm

Jan57

Original Poster

Posts: 144

40 helpful points

Location: La Zenia

Joined: 2 Feb 2017

Posted: Sun Oct 25, 2020 10:59pm

Kimmy11 wrote on Sun Oct 25, 2020 10:53pm:
Hi Jan,
As I mentioned in my earlier post, your buyer's lawyer will have retained 3% of the sale price. This has to be paid to the tax office within 1 month of the sale, via tax form Modelo 211 - it's a legal requirement when non-residents sell property and if you had owed any CGT (Capit...

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...al Gains Tax), this would have been paid out of the retention. Within 3 months of the buyer's lawyer submitting the Modelo 211, the seller should claim back the 3% - or any balance after tax deductions - by submission of the Non-resident tax form, Modelo 210.
It's unfortunate that you used the same lawyer as the buyer - despite what the estate agent may have told you, this is a conflict of interest, although that's no excuse for the lawyer failing to make you aware of the timescales.
Kind regards,
Kim

Thank you for your advice, I will contact lawyer and ask him to submit form, it’s worth a try.

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Posted: Mon Oct 26, 2020 8:01pm

Delilah

Posts: 31

33 helpful points

Location: Torrevieja

Joined: 16 Jul 2020

Posted: Mon Oct 26, 2020 8:01pm

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 ?

No, you are not too late. The only downside will be that submitting the application after that "3 months mark" there will be a penalty payment for late submission for you. Anyway, that penalty payment is not that high that it wouldn't be worth to pay it if in exchange you can recover at least part of the 3% tax retention.

About if your lawyer should have applied in your behalf automatically ... well, at least having made the calculation and having informed you about the possibility of a refund would have been the more professional way to handle it. You are saying it was the Estate Agency lawyer. Are you sure it was a lawyer and not only just an employee from the Estate Agency who dealt with the paperwork regarding your sale?

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Posted: Mon Oct 26, 2020 8:09pm