update on tax refund due to sellers as capital gains laws .

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This topic contains 1 reply, has 2 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 4 months ago.

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  • #54183
    Profile photo of Anonymous
    Anonymous
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    I was reading an article in my Irish Sunday paper regarding the change in capital gains laws regarding selling a property in Spain.
    It stated that prior to January 1 2007 capital gains on Spanish priperties were charged at 15pc and for non residents at 35pc. Through pressure from the european Comission it was changed toa flat rate of 18pc for all weather resident or non resident.
    from Jan 2007 no provisions were made to correct the previous descriminatory system. Spanish tax laws limits you to a 4 year claim perion so the article states that those people who sold between August 2004 and dec 31 2006 may make claims to have the extra money that they paid when they sold returned or rebated to them. you could basically be in line for a 20pc refund.
    They go on to state that you should claim from the Spanish revenue and that of course they will resist paying you as it would open floodgates for such rebates but that LEGALLY you are by law entitled to have that money returned.
    If the revenur resists or tries to say you have no claim then they are wrong and you should then proceed to take a legal case against them.
    You may say …yes ! but it will cost money to take a case against them if they decide to ignore your claim but think of this!! you may be entitled to a rebate of several thousand euros and even with the cost of the case you would still come out of it better off.

    Well I read about this in the Irish mail on sunday and the people who wrote it were property international tax consultants http://www.ptireturns.com
    log on for more infor to the site .

    I just saw this article and thought it might be of some help to someone on the forum.

    Good luck!!

    bettyboo

  • #85254
    Profile photo of Anonymous
    Anonymous
    Participant

    Of course this only applies to those who actually declared and paid at 35%

    Back then the retention was 5% whereas now it is 3%.

    Many selling in that period were reporting sizeable paper profits as they had either purchased at a relatively low price or the underdeclared element on purchase was high compared to any undeclared element on sale.

    The consequence of all this was that many having done their sums walked away and let the retention stand.

    So do your sums carefully before you rush into the Tax Office demanding any refund to which you might feel you are entitled.

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