Taxes when selling our house in Spain

We bought our house in 2009 for 100.000 euro and we are selling it for 90.000 euro, I have been told the tax office will insist I pay 21% of the sale price for Capital Gains tax but there is no gain.   I am buying another house in Spain, I am not resident I live in UK, house is holiday home only, can anyone advise me please? 

We bought our house in 2009 for 100.000 euro and we are selling it for 90.000 euro, I have been told the tax office will insist I pay 21% of the sale price for Capital Gains tax but there is no gain.   I am buying another house in Spain, I am not resident I live in UK, house is holiday home only, can anyone advise me please? 

Perhaps it would be a better idea if you asked the tax office in person, or get advice from a solicitor, rather then just accept "Being told" that you will have to pay almost 19.000€ in Capital Gains Tax on a 90.000€ house sale.

There is only a CGT to pay if you have made a profit. 

If you are a non-resident, the tax office will retain 3% of the selling price. Once it has been shown that there is no gain on the price, the 3% will be returned. Be aware that it could take up to 2 years to get this 3% back. 

If you are resident and buying another property, there is no tax to pay if you have not made a profit.

Well done to you for only taking a loss of ten grand. Most people who bought some years ago will have taken a bigger hit than that in euros (in pounds, not so much unless you bought when the pound was really low).

Don't know where the 21% comes from.

 As the owner / seller, you are also liable for the  Plus Valir tax.  It's a charge on the increased value of the land upon which the property is built, or a percentage in the case of a  block of apartments. It is payable to the local town hall.  

The Hacidena will put their own value on your property not the figure you sold it for. This is because of rampant under declaration of sales prices in the past.

You can appeal but I would not bother.

"If you are tax resident and buying another property, there is no tax to pay if you have not made a profit."  

Or if you have made a profit, and you are rolling it over into another home in Spain.  However, if you buy  a property for a lower price, then there can be tax to pay.

Yes, camposol. But 21% on the profit if any. Not 21% of the entire selling price which susanFord says her solicitor has quoted.

Maybe something got lost in translation?

From  http://www.globalpropertyguide.com/Europe/Spain/Taxes-and-Costs

CAPITAL GAINS TAX

Capital Gains Tax (Impuesto de Plusvalia)

Nonresidents selling their Spanish property have to pay capital gains tax. The capital gain or loss on property sale is computed as, transfer price less acquisition cost (acquisition price and related expenses) and less appropriate minimum depreciation. The acquisition cost is indexed by applying a coefficient published annually by the Budgetary Laws, based on the year of acquisition.

Capital gains and investment income are taxed at progressive rates; the tax is 19% on the first €6,000 and 21% on the remaining amount. For 2012 and 2013, a supplementary levy has been approved: 2% extra for the first €6,000 (up to 21%), 4% extra for the next €12,000 (up to 25%) and 6% extra for the amount exceeding €18,000 (up to 27%).

This message was last edited by johnzx on 20/04/2014.

Thank you so much everyone for all the advise I have received it is very much appreciated, I was totally confused about CGT and the 3% retention the tax office hold, when I sold my previous holiday home in Spain the lawyer never contacted us about the 3% Spain were holding, we did pay capital gains in the UK and fortunately had all the receipts of payment to give to our accountant which UK tax office accepted.   Now I understand, I have heard stories that you cannot get the 3% returned from the tax office here, we are selling again and buying another holiday home, there will be no profit on the house being sold, am I right I will have to keep my fingers crossed to get the 3% retention returned

At the time of year they do the tax refunds and take tax owing off you (with I think is September to December time) then the 3% retention tax is applied for. You will get the 3% tax returned if there are no taxes owing but it can take up to 2 years to get it.

We sold a flat (as non-residents) in July. We received the 3% back in May the year after the year after (if that makes sense). Some 22 months later. Some people have had it quicker so I assume it depends on what time of year you sell the property.

The solicitors retained 10% of that as their fee for claiming it back (you just can't seem to win over here).