Retention tax

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This topic contains 13 replies, has 9 voices, and was last updated by Profile photo of Inez Inez 9 years, 1 month ago.

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  • #53423
    Profile photo of Anonymous
    Anonymous
    Participant

    How long does it generally take to get the 3% retention tax back for a non-resident selling a property. Our solicitor has said up to 1 year and sometimes not at all…

    Any info is greatly appreciated.

    Ian

  • #75775
    Profile photo of Anonymous
    Anonymous
    Participant

    Your lawyer is not far out.

  • #75824
    Profile photo of Anonymous
    Anonymous
    Participant

    That is of course if you are due to a refund, but yes it can take a long time, I beleieve that after six months any refund due will attract interest!!

  • #75874
    Profile photo of Inez
    Inez
    Participant

    The one and only time my poor secretary undertook to handle a sale conveyancing (at owners request and to provide insight as to how the system works) it took just after 6 months to get the guy his refund. He was UK non resident and Hacienda were called weekly by my girl until they responded.

    Ensure you keep your bank account open as its an utomatic transfer and this is where people go wrong. They close the account that is given to the tax office so when they try to send it back, its returned! This also happened to our guy and eventually after another couple of months it was sorted!

    We had power of attorney to deal with it luckily!

    Good luck

  • #75883
    Profile photo of Anonymous
    Anonymous
    Participant

    i was due money back from tax paid on property and it took about 16 months to have it returned. We were advised not to keep phoning them every few weeks to check up on it as we were told that they could get very annoyed and then thay may be liable to “lose ” the paperwork.
    Eventually thanks to our solicitor who was very good we got it back .
    It was deposited automatically into our bank account, we had given them the bank details at the time of the request and it was sent directly into the bank.
    There are some honest people after all !!!

  • #75904
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks everyone, all sounds very familiar.

    Ian

  • #75990
    Profile photo of Aunty Val
    Aunty Val
    Participant

    Can one of our resident lawyers just confirm something for me?

    Is it 3% or 5% which is retained/sent to the hacienda?

  • #75992
    Profile photo of Anonymous
    Anonymous
    Participant

    Was 5%, now 3% from 01/01/07

  • #75993
    Profile photo of Aunty Val
    Aunty Val
    Participant

    Thanks Mark

  • #75998
    Profile photo of Anonymous
    Anonymous
    Participant

    Mark is correct.

  • #76123
    Profile photo of Anonymous
    Anonymous
    Participant

    Two years on I am still waiting – was told recently it should have been refunded 1 week ago but no sign as yet

  • #76125
    Profile photo of Inez
    Inez
    Participant

    Have you got the bank account stillopen – the ones whos details were given to hacienda as its really easy to overlook that one.

    Other than that you can call them to find out what the delay is

  • #76126
    Profile photo of Anonymous
    Anonymous
    Participant

    I applied for the refund using a Gestor and he says they can’t call but visit the Hacienda in Alicante once a month for an update. I have a different bank a/c but my Gestor has told me that the Haciensa have the correct details

  • #76128
    Profile photo of Inez
    Inez
    Participant

    Well all regions work differently, so no reason to think otherwise. I guess you will just have to be patient and do like the Spanish

    Manana!

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