Hi, I have waited a year for my 3% retention and have just been informed by my solicitor that if I go ahead I will be charged € 7000 capital gains tax as I made a profit on the sale and as such it is better not to put in a claim.
Is this correct? I thought the solicitor retained the 3% in case of debt against the property, is my solicitor just pocketing the money as I can’t believe they would wait a year to give me this information as they knew about the profit at the point of sale.
The reason for the retention was that many sellers did indeed skip off without paying capital gains in the hey days of the property market.
A rough check of what you paid originally in Euros versus the selling price should give you an indication of any capital gains due. In the hey days of the Spanish property market, it was also common to pay part of the asking price in cash (black money) which would increase the capital gain when selling as the true price was under declared, if you actually achieved a higher value!!
This reply was modified 1 year, 9 months ago by Pazza.