Re: 35% capital gains tax



Many thanks to flw and independent for the advice, you obviously know more about the subject than me. I bought an off plan villa from a “superior” estate agent, it was finally completed last year. (see my thread Late completion nightmare in Ayamonte) The smooth talking agent said I would be able to rent it for 16,000 euros a year and like a fool I believed him. I will be lucky to make 4000 euros a year so have decided to sell. Please help me with my mathematics, I bought it for 180,000 euros plus 10 % for iva and fees total 198,000 euros. I furnished it at a cost of 12,000 euros, total cost to me 210,000 euros. It is now for sale with an estate agent in Ayamonte for 238,000 euros who charge 8% commission, yes 8% plus tax. So if I sell and deduct agent’s fees plus tax and lawyers I will make 215,000 euros, a profit of just 5000 euros,yes, I know it was not one of my better investments. If the notary takes a 5% sellers fee this will be 5% of 238,000 which is 11,900 euros but my capital gains tax will be just 35% of 5000 which is 1750 euros so the Spanish tax authority will owe me 10,150 euros. Can anyone tell me how I get this 10,150 euros back.