[precious]

HI MY MOTHER RECENTLY SOLD HER VILLA  PAID ALL THE BILLS AND THE 3PERCENT TAX SHE RECIEVED A EMAIL ASKING IF SHE WAS HAPPY WITH THE BREAK DOWN OF FEES SHE WAS THE NOTORIA WERE INFORMED SALE DONE AND BANK DRAFT GIVEN TO THE PEOPLE TRANSFERRING IT FOR HER THIS WE THOUGHT WAS THE END AS FUNDS ARE RECIEVED , WE THEN GET A CALL FROM SOLITOR SHE WAS USING SAYING THEY WANT 5000 EUROS TAX COS SHE MADE PROFIT DOES SHE HAVE TO PAY THIS BILL I PRESUME SOME SORT OF TAX SHE HAS NOT SEEN THE BILL JUST INFORMED BY SOLICITOR WHO I MAY ADD SAID UP TO YOU IF YOU WISH TO PAY , ASI SAID WE HAVE THE MONEY NOW IN HER UK ACCOUNT AND THOUGHT THAT WAS THE END OF SALE MUMIS 81 AND WORRYING HER SELF SICK WILL SHE BET INTROUBLE NOT PAYING THIS OR IS IT AS HER SOLICIRTOR SAID UP TO HER>?? PLEASE CAN ANY ONE HELP POOR LADY IS BESIDE HER SELF

[Mark Stücklin]

Precious,

First things first. Tell your Mum to calm down and not worry. There is very little chance she will run into trouble.

It sounds like the 3% was not enough to cover her Capital Gains Tax liability. Have you seen an official tax demand from the Spanish tax authorities? There should be a document of some sorts.

I assume lots of people leave Spain without paying their CGT. That’s why the Spanish tax authorities insist on the 3% retention. I’ve never heard of anyone being chased back home for what they owe the Spanish taxman, which is not to say it’s never happened or won’t’ happen. But if your Mum’s solicitor is saying it’s up to her if she pays that gives you an idea of small the risk is.

[Chris Nation]

Hang on a minute! Have I not read that CGT does not apply to those over 65? When I read that it was almost as good as the thing about UK  state pensioners ( as EU citizens) being auto-entitled to the Spanish NHS, if registered as resident.

[Mark Stücklin]

Chris, that’s true but only if you are a Spanish resident at the time of sale, to the best of my knowledge. If she paid the 3% retention that implies she was non-resident.

I’ve asked around and nobody I know has ever heard of anyone being chased for their CGT liability back home. It seems the Spanish taxman just keeps the 3% in full.

For more info see: http://www.spanishpropertyinsight.com/2014/12/08/taxes-selling-spanish-property/

[precious]

hi yes mum was non -resident

she has definitely paid the 3 percent the solicitor mum used to deal with her selling the villa paid all the bills , then we used currencies direct to transfer the funds , later in the week we received a call from mums Spanish solicitor saying there was a bill for 5559.00 euros !!but they had transferred the funds over we now don’t know what to do its an awful lot of money and a big loss for my poor mum, she is worried she will get in trouble if she doesn’t pay it.there is nothing on line any where to say what happens if she doesn’t pay it sadly so feeling a bit stuck I have recommended she leaves the amount hidden in an account in case they do chase her ??

[Mark Stücklin]

Precious, I’ve never heard of anyone being chased back home by the Spanish tax authorities for a CGT liability above the 3% retention. Neither have any of the lawyers I have asked. Obviously I can’t make any promises but I don’t think your Mum needs to worry. Also, let’s face it, though a big sum for you, the figure isn’t big enough for the taxman to get interested – it might cost them that much to go after it. If you owed them €1m that would be a different matter. So tell your Mum not to worry.

[Guganoo]

Hi- I have just received an offer on my apartment in Valencia, which if we complete will mean that I am selling at a loss. Am I right that we will not have to pay the 3% CGT, given that ther is no capital gains?

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