Retention money

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This topic contains 3 replies, has 4 voices, and was last updated by Profile photo of Charles Windebank Charles Windebank 1 year, 4 months ago.

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  • #187192
    Profile photo of graham
    graham
    Participant

    We purchased a re-sale property from a uk couple 6 years ago and we had to pay 3 per cent on top of the asking price with all the other fees. When we asked our solicitor why he said we had to pay this incase the couple did not pay any capital gains tax on the profit they made on the sale. Is this correct? Why did we have to pay this extra tax as the buyer?

  • #187209
    Profile photo of Mark Stücklin
    Mark Stücklin
    Keymaster

    Graham,

    If you had to pay the 3% on top then you were taken for a ride.

    The 3% is supposed to come out of the agreed price. But instead of paying the vendor 100% of the agreed price, you pay 97% to the vendor, and 3% to the tax man. It’s all explained here: Spanish capital gains tax retention on property sales by non-residents

    There is also more information on this forum see 3% retention tax

  • #187305
    Profile photo of BO JANGLES
    BO JANGLES
    Participant

    IS THERE NO EUROPEAN UNION DEPARTMENT OR OMBUDSMAN THAT CAN TAKE UP THE ISSUE OF UNFAIRLY RETAINED RETENTION MONEY BY THE SPANISH AUTHORITIES. MY WIFE AND I SOLD OUR HOUSE LAST YEAR AT A CONSIDERABLE LOSS, ONLY TO FIND WE HAD TO HAVE 3% DEDUCTED FROM OUR SALES PROCEEDS.

    JOHN DUTTON

  • #187309
    Profile photo of Charles Windebank
    Charles Windebank
    Participant

    You’ll probably have a greater chance of winning the Euromillions than receiving a rebate. I’ve had a 5% (yes, 5%) retention dating back to 2007 (refer to my post dated 7/8/2103) and my solicitor’s response dated 3/9/2103. The name is real, he’s Palma de Mallorca based and genuine. My claim was a paltry 30.000K euro (5%) and reluctantly written off having wasted 3.000K euros chasing rainbows. Good luck…

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