Retention money

Tagged: 3pc retention / withholding tax, Tax

This topic has 3 replies, 4 voices, and was last updated 9 years, 10 months ago by Charles Windebank.

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- July 20, 2015 at 7:14 pm #187192
  
  graham
  Participant
  
  We purchased a re-sale property from a uk couple 6 years ago and we had to pay 3 per cent on top of the asking price with all the other fees. When we asked our solicitor why he said we had to pay this incase the couple did not pay any capital gains tax on the profit they made on the sale. Is this correct? Why did we have to pay this extra tax as the buyer?
- July 24, 2015 at 11:52 am #187209
  
  Mark Stücklin
  Keymaster
  
  Graham,
  
  If you had to pay the 3% on top then you were taken for a ride.
  
  The 3% is supposed to come out of the agreed price. But instead of paying the vendor 100% of the agreed price, you pay 97% to the vendor, and 3% to the tax man. It’s all explained here: Spanish capital gains tax retention on property sales by non-residents
  
  There is also more information on this forum see 3% retention tax
- August 8, 2015 at 10:37 am #187305
  
  BO JANGLES
  Participant
  
  IS THERE NO EUROPEAN UNION DEPARTMENT OR OMBUDSMAN THAT CAN TAKE UP THE ISSUE OF UNFAIRLY RETAINED RETENTION MONEY BY THE SPANISH AUTHORITIES. MY WIFE AND I SOLD OUR HOUSE LAST YEAR AT A CONSIDERABLE LOSS, ONLY TO FIND WE HAD TO HAVE 3% DEDUCTED FROM OUR SALES PROCEEDS.
  
  JOHN DUTTON
- August 10, 2015 at 11:07 pm #187309
  
  Charles Windebank
  Participant
  
  You’ll probably have a greater chance of winning the Euromillions than receiving a rebate. I’ve had a 5% (yes, 5%) retention dating back to 2007 (refer to my post dated 7/8/2103) and my solicitor’s response dated 3/9/2103. The name is real, he’s Palma de Mallorca based and genuine. My claim was a paltry 30.000K euro (5%) and reluctantly written off having wasted 3.000K euros chasing rainbows. Good luck…
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