Been waiting 18 months to get back the 3% retention after selling a property in Spain.. Now heard from the solicitor (that I already paid 700 euros to sort things out) They are saying that I haven’t paid 4 years of Non residents tax, so owe Tax Office around 3000 Euros, plus 20% surcharge plus more solicitors fees for working out figures .
They say the Spanish Tax office want the money up front, and then will give me the 3% back. 1st Question: Is this normal? 2nd Question: Why can’t they just take it from the money they are holding which is 7000 Euros?
I will have to borrow the money and am afraid If I pay upfront – they are then going tell me I owe them more money for “something else” 3rd Question: Does anyone ever get back their 3%? Many thanks
Madeline, I’m afraid to say it does sound like normal practise from the Spanish taxman. They don’t offset other costs against the 3% retention. As far as I am aware you either pay all your taxes and they return it in full, or they keep it all.
People who are all square with the taxman do get paid back the 3% in the end, but it can take an outrageous amount of time. There are quite a few threads on this question, which you can see here: 3% retention / withholding tax. Read through them to see how long others have had to wait.
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