Re: Re: Spanish capital gains tax retention on non-residents

Fuengi (Andrew)

@mark wrote:

It’s an issue that is growing in relevance as increasing numbers want to sell up and go home. Most people have no idea about this procedure, and one of the big questions is ‘how long will it take to get a refund?’

Well, this is Spain, so it depends on where you are. Some are reporting a year, others 16 months.

Anyone have any experience of this issue? How long did it take you to get refunded? Anyone find they had to pay more (increasingly common)? Please say where the property is. This will help build a picture of what is going on around Spain. Nobody really has a clue (most lawyers only know what is happening in their local tax office).

(please note this is based on my experiences only, no hearsay)
As long as it gets paid in on time (first twenty days after sale) and the forms are filled out correctly it takes approximately 6 months to get it back. Slightly longer if august or christmas is during that time, as the tax office staff in charge always seem to be on bloody holiday. This is based on properties sold in the Fuengirola/Mijas/Benalmadena areas. The tax office is in torremolinos by the way.
Most vendors get the full 3% back unless they are skipping on paying CGT (capital gains) or have not been paying the other taxes due.

The biggest issue for many foreign sellers, is they are in the situation where they cannot prove they are not making a profit. Either because they under-declared when they bought, or they do not have the invoices to prove their costs.

There is also the issue of getting a copy of the modelo (cannot remember the number!) that was given to the tax office, a must for reclaiming the retention.

I have also found, in my experience, that lawyer is not as suited as a conveyancer for reclaiming the monies. You need someone who knows the system and the praticalities. Lawyers seem to be all theory and more expensive.