Spanish Property Insight › Forums › Spanish Property Forums › Property Questions & Answers › Should you use Lawyer or Gestoria when selling ? › Re: Re: Should you use Lawyer or Gestoria when selling ?
Hi Ptr, Thanks for your comments I only try to help. The problem with the 3% retention is in the currently economical situation, not during the property bubble, for example:
– During the property bubble: You buy a house 100,000€ and sell it for 150,000€ so deducted cost of purchase you have a benefit of 40,000€ approximately. In this case the 3%retention would be 1200€ and 21% of CGT (although the calculation is not exactly this way because there are other point to consider like the years between buy and sell) would be 8,400. So no complain about the retention.
– But let’s see what happens now: you buy a house for 100,000€ and sell it (if you are lucky) for 120,000, deducted the cost you would have a benefit of 10,000€ .The 3% retention would be 3,600€ and the 21% CGT would be 2,100€, here starts the problem…
– And what happens if you buy in 100,000€ and sell in 90,000€? (Nothing strange in these days) that they retain the 3% , 3,000€ and you had lost about 20,000€
I hope I clarify it for you, and if I made a mistake, I would be happy if anybody from the forum help us.