Tagged: 3pc retention / withholding tax
July 13, 2016 at 5:57 pm #191781
My siblings and I sold my father’s property nearly two years ago. We have paid every Spanish tax under the sun. The 3% sales retention was withheld but we made a successful claim and were told it would be repaid within 7-10 months.
16 months later and after much prodding of our Spanish notary, we received a Banco de Espana cheque for half the value BUT it had a cheque validity date only two weeks later. We got advice from our Euro bank and attempted to cash the cheque. Epic fail. The cheque will take 13 working days to be received bank by Banco Espana and by then it will have expired. Our bank instruct us to demand the tax office issue another. Our notary thinks this is unlikely.
As far as I can tell, this is yet another way to stall the repayment.
Is there a community / EU representative / anyone? we can ask to push the Tax authority into sending us the proper amount by a proper date? It is too much money to write off given that we have already paid huge sums of inheritance etc etc and are already considerably out of pocket.
Any help would be much appreciated.
July 14, 2016 at 4:07 pm #191793
My god how under handed are the spanish tax authorities, time and time again they just write themselves a blank cheque when you sell your property, the way its all worked out must be illegal, I hope one day they have to repay everyone they have short changed.
July 16, 2016 at 11:36 am #191863
Just when I thought I’d heard it all the Agencia Tributaria comes up with a new way to make things difficult for people. And the organisation’s website is one of the least user-friendly sites on the planet.
I’m not aware of any ombudsman or EU representative to help you with this. I fear you might just have to throw more money at the problem with a lawyer. For what it’s worth I’m making a list of all the things that the Spanish authorities do like this to make Spain a less attractive place for foreign investors, to be taken up with the authorities later this year, if I can get a hearing.
July 16, 2016 at 4:30 pm #191871
Well done Mark.
July 17, 2016 at 11:42 am #191873
Pity they cant track down black money rather than screwing people trying to do things correcty
Why not try asking on the Citzens Advice Bureau Spain Facebook/webpage … they are a reg. charity and model themselves on the UK version.. they have won some cases against Spain gov. and they have a tax expert who volunteers for them… keep us updated
July 19, 2016 at 6:58 am #191887
Dear Mark and everybody,
My wife and I sold our Spanish house two years ago, today we received our retention money together with interest from the Spanish tax office in Malaga. I have to say that without the help of the Spanish accountancy company Fernando Gil Martinez in Fuengirola near Malaga, who had completed our tax returns for the eight years that we lived in Spain. Getting the money back was not without potential problems. The tax office wrote to us at our old post box address that we had when we lived in Spain claiming that we had not paid our non residence tax for 2014 and 2015. We of course did not know about this until ,the accountancy company made one of their scheduled follow up visits to the tax office. On learning this information the accountancy company was able provide copies of tax returns and confirm our tax obligations to Spain had been fulfilled. I can only recommend that if you follow all the rules and use a reputable Spanish speaking organisation to keep on top of tax office ,you will get your retention tax back.it has taken just on two years though.
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