3% Retention Tax

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This topic contains 6 replies, has 3 voices, and was last updated by Profile photo of Anonymous Anonymous 7 years, 10 months ago.

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  • #54674
    Profile photo of Anonymous
    Anonymous
    Participant

    We sold our apartment and signed and completed the sale at the notary on the 22nd Dec 08. We have now got to go through the process of reclaiming the 3% retention tax. We have been told that the purchaser has one month to pay the tax. The one month is up tomorrow and the tax has not yet been paid by our purchaser.

    Does anyone know if this will effect our claim, obviously if they don’t pay it we won’t be able to claim it back.

    What if they don’t pay it? Will we lose the money?

  • #89373
    Profile photo of Anonymous
    Anonymous
    Participant

    Jackie,

    You have probably read my comment on this subject in a few posts below. I asked the very same, although have not yet completed on the sale.

    You still need to pay tax for 2008 so your 3% return has reduced a little.

    But are you due a tax refund? If so I guess you bought less than 5 years ago and are selling at a loss or very small profit, otherwise there is no tax to be returned as you will have a capital gains liability

  • #89573
    Profile photo of Anonymous
    Anonymous
    Participant

    Jackie,

    You have probably read my comment on this subject in a few posts below. I asked the very same, although have not yet completed on the sale.

    You still need to pay tax for 2008 so your 3% return has reduced a little.

    But are you due a tax refund? If so I guess you bought less than 5 years ago and are selling at a loss or very small profit, otherwise there is no tax to be returned as you will have a capital gains liability

  • #89601
    Profile photo of Anonymous
    Anonymous
    Participant

    Yes, we are selling at a loss in euros, but due to the fact when we brought the euro was at 1.57 to the pound and we cleared our bank draft at 1.03 29/12/08 to the pound, we consider ourselves lucky enough to be able to reduce our price enough to attract a buyer and break even! Our lawyer has just confirmed today that the tax has been paid, today. Now we have to go through the long winded process of claiming a refund. Yet another piece of red tape to put us off ever buying in Spain again.[/url]

  • #89401
    Profile photo of Anonymous
    Anonymous
    Participant

    Yes, we are selling at a loss in euros, but due to the fact when we brought the euro was at 1.57 to the pound and we cleared our bank draft at 1.03 29/12/08 to the pound, we consider ourselves lucky enough to be able to reduce our price enough to attract a buyer and break even! Our lawyer has just confirmed today that the tax has been paid, today. Now we have to go through the long winded process of claiming a refund. Yet another piece of red tape to put us off ever buying in Spain again.[/url]

  • #89606
    Profile photo of Anonymous
    Anonymous
    Participant

    “Yet another piece of red tape to put us off ever buying in Spain again.”
    Jackie, I understand your frustration specially if you need that money to buy something in UK. However please note that the red staff is not only in Spain it is the same all over Europe. Yes it creates jobs.

    UK, is not lagging behind either. We don’t notice it as the solicitors do a lot of this work without us knowing about it.

  • #89406
    Profile photo of Anonymous
    Anonymous
    Participant

    “Yet another piece of red tape to put us off ever buying in Spain again.”
    Jackie, I understand your frustration specially if you need that money to buy something in UK. However please note that the red staff is not only in Spain it is the same all over Europe. Yes it creates jobs.

    UK, is not lagging behind either. We don’t notice it as the solicitors do a lot of this work without us knowing about it.

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