Spanish Refund of Retention

This topic contains 5 replies, has 4 voices, and was last updated by  Pazza 1 year, 6 months ago.

  • Author
    Posts
  • #195500

    Rees Family
    Participant

    We sold out property just outside Alicante in Nov 2012 and are still awaiting the 3% retention 4.200 € refund is this correct? Also would the cheque usually be made to us or our solicitor?

  • #195777

    Pazza
    Participant

    Hello,

    We had been advised by our solicitor in 2015 that the process took 6 to 9 months. In reality, it took 14 months. They really do like to hang on to your money.

    The refund was paid into our bank account directly.

    Is your solicitor acting on your behalf to recover the money? Ours charged 10%.

  • #195785

    Exowner
    Participant

    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.

    Any help or comments would be appreciated

  • #195790

    Pazza
    Participant

    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.
  • #201987

    Barbara A
    Participant

    So, we sold last year in June how do we get this money back?

     

  • #202011

    Pazza
    Participant

    The solicitor that you used to sell the property is the best person to do this for you. They will charge for the service, ours wanted 10% of the cash recovered.

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