5% withholding tax on sale

Hi, I am writing this in the hope that one of the Spanish lawyers reading this may have some ideas.

I've sold our villa on La Torre in August 2012 at a significant loss. However a 5% withholding charge was made as we were non resident in Spain.

my lawyers said for a fee of I think a few hundred Euros, they would apply to get it back, but in some cases it was taking a year or longer. It's now been ovver2 years and I think it's unacceptable that €5,000+ can be kept with no formal process for return.

what can I do? I have asked my lawyers repeatedly to chase but they just say, ok we'll ask but these things take time - which as you can imagine drives me even madder.

Many thanks, Carl

This message was last edited by carl9 on 12/12/2014.

This message was last edited by carl9 on 12/12/2014.

Did you leave a Spanish non res bank account open? they need this to pay the retention back.

Hi Tram GB yes it's the same account I have today.

Carl

We are also waiting for our retention back. I thought that it was 3%. We were also told that we must keep our bank account open and that it could take about a year. I would agree that over 2 years is unacceptable but you can only chase up your lawyer Carl, unless someone has any other ideas.

We only sold last month, also at considerable loss, so would hope to get our money back this time next year. No idea why it takes so long.

It's your solicitors that aren't bothering. The Retention tax is 3% and is paid into your non resident account, or any accouht you choose when applying.

We had exactly the same problems and the solicitors kept telling they had applied. After over 2 years we went to the AEAT in Alicante and were told it was paid within 6 months of the form 210 being submitted. They said they had tried to pay it but the bank had rejected it. Turns out the solicitor had given the wrong accouht number. AEAT checked the form 210  paid the money to our new account and added 6% interest for late payment. We had waited close to 3 years with the solicitors being as much use as a chocolate fireguard.

AEAT also told us the 210 should be submitted within 4 months and with payment taking no longer than 6 months then the maximum time to wait would be 10 months if things were left to the last minute. 

You can't,  unfortunately, do this by phone as it is only for general tax enquiries. 

Change your solicitors or go in person.

Right. Exactly as Mariedav says.

This post might be of interest:

http://www.eyeonspain.com/blogs/costaluz/10538/Legal-tip-974-Taxes-and-expenses-when-selling-property-in-Spain.aspx