Retention of non resident

This topic contains 4 replies, has 4 voices, and was last updated by  Inez 10 years, 6 months ago.

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  • #54626


    Happy New year to you all. I sold my property in Feb 06 and my lawyers kept back 5% retention of €14,250. What happens to this amount and how can I claim it back. Thanks.

  • #89048


    Ask your lawyer, what he did with the 5% deducted. Did you get a receipt from him/her, stating what the amount was for ? As you have paid this retention, I take it that you are a non resident. Did you sell it a resident or non resident ??

    A calculation for the capital gains has to made. Dont forget all buying/Selling cost, Taxes, tapering relief that you can set off against your gain. Once this has been done you can arrive at taxable gain/or loss, depending on this you will either has to pay more or get a refund.

    The probable reality would be some where.

    1) Depending on the lawyers, they may have not passed the tax on.

    2) Calculated the gain & kept some or all of it. If you approach the lawyer may tell you that he the Spanish Tax office has lost your file.

  • #89049


    Strange for it to be 5%. the official rate is 3% of the selling price. This is given to Hacienda and they then refund you on the assumption there are no outstanding tax liabilities from the purchase.

    This was taking around 8 months and they transfer direct back to your bank account, so ensure its not closed as its a nightmare to sort out otherwise!

    If I were you I would be onto your lawyer to find out what this was for and why its 5%!

  • #89050


    @inez wrote:

    Strange for it to be 5%. the official rate is 3% of the selling price.

    Not in Feb 06 it wasn’t. It was still 5% then and changed on 1st Jan 2007.
    You (or your lawyer) need the receipt for this retention to go with your CGT declaration to Hacienda which should have been done within 3 months of the sale. This form is self assessment and so they (Hacienda) will verify if any refund or additional tax is due and should pay/invoice you within some months of your claim. If your lawyer was doing this on your behalf you need to chase them up!

  • #89061


    Ahhh, sorry, I missed the date part đŸ˜†

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