5% Retention Fee

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    • November 19, 2005 at 2:19 pm #51368
      Anonymous
      Participant

      Hi, I am thinking about selling my apartment in Spain and have been told that if I sell the Spanish government would keep 5% retention fee. If I sell I will make a very small profit which I would have to pay 35% cgt on. However, the 5% rentention fee is probably more than the 35% tax I would have to pay but my lawyer said that currently to get the balance back from the government can take years if you get it at all. He says that the Spanish government is very reluctant to pay this money back. Is this true? It seems very unfair that you should pay nearly all your profit to the government, especially after the huge taxes paid in the purchase as well.

    • November 19, 2005 at 10:36 pm #59900
      Anonymous
      Participant

      hi.

      If the 5% is more than the 35% CGT it taks approximately a year to recover your money filing tax model 212.

    • November 20, 2005 at 11:24 am #59903
      Anonymous
      Participant

      thanks

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