Capital Gains tax refund when selling

Hi

I sold my property in April 2016 at a loss. I haven't received my 3% refund yet and have been advised if I don't get my refund by the end of the year I will need to pay 2015 non resident income tax .....is this true? When can I realistically expect the refnd ...apparently the tax office will provide a compensation for the delay in the refund

If you mean the 3% retention tax ( to make sure you have left no debt) i  don't know where your property was but mine was in Murcia, I waited 3years but yet I know people that have had it back in 3 months, I paid for another solicitor to sort it out, the first clown I had ( solicitor) did not apply for the money back in the right way, don't pay any more taxs back they will take it from the money they are going to send you back. And I don't know who told you you will get compo I've sold 2 properties and I've had friends sell, non have had compo, in most people are just glad to get the 3% back. 

Thank you,my solicitor told me about the compensation. He also wants some money ,minor amount although I thought it was included in his fees as he didn't mention it until I asked him to chase again as initially he told me to wait 8 months.will they definately take last year's tax off as he says they won't pay until I am up to date.Apparently it's Alicante office that he is chasing,property was in Playa Flamenca so would have thought it would be dealt with in Murcia.Is it something I could chase myself ,if so anyone know the tel number please and would info I need to provide?

He is pulling your chain, I have sold 2 properties and both time I never paid taxes they took them from me from the money I owed, both time I was paid out with paying the taxes on time, You should not owe him more money he should/would  costed it in when you sold, I ended up using a solicitor from up near where your property was, I think I paid about 300 euro, I got back around 4500 euro in about 8 weeks from my new solicitor start to finish, Watch out your solicitor is not trying to milk you for more money than they should be. He should have filed your sale off to the taxman after the sale mine never did, and when he did he did it wrong, and he did not want to know.

Our taxes were all paid up until we sold the property, nothing more paid. We had our retention money back exactly one year after sale. We were told to leave our Spanish bank account open until this money was paid. Our estate agent dealt with all the legal stuff, including (I think) claiming this money back. We didn't use a solicitor at all. Our thought were that we paid a huge sum to the estate agent so they might as well do all the work.....which they did well.

We were in the same area as you Dream, and also made a loss.

Six years ago I sold an apartment in Andalucía at a loss (55,000 Euros) and bought a house nearby. I am non- resident so claimed back the 3% retention. Four years ago the Spanish Tax Office valued the flat at 110,000 Euros and charged me Capital Gains Tax on 55,000 Euros. Be warned!

When buying a property from a nonresident, the buyer needs to retain 3% of the price and paid it into the Treasure.

This retention is an advanced payment of the capital gains of the seller.  Therefore the buyer will give to the nonresident seller the 211 tax form that proves that the advanced payment has been made and made the corresponding calculations for either pay the complement or ask for a refund.

Pay the complement: if paid 3% os lower than the corresponding capital gains tax

Ask for a refund: if paid 3% is higher than the corresponding capital gains tax

Property is attached to the lower amount between 3% and corresponding tax.

Approximately how much is the non resident tax?

The non resident tax is only 33 euros still seems unfair to have to pay when I sold in April. Apparently if I don't receive my refund by 31st December then they may hold the tax refund until I pay the non resident tax

Is there a number I can call to chase up myself?

GB45 and Newworld how long ago was it when you sold your property? 

In my opinion, as happens in the U.K., all transactions when selling or buying a property should be finalised at the time of completion.

anything less than this is open to abuse and to fraud.  

Thats my own opinion, maybe the system needs reform to be honest and fair. 

Having purchased and completed in Feb 2008 on a complex near Alicante, the builder ceased to trade in March 2008 and many partc of the complex is still not complete. the resident community have saved the monies for the work to be done but the utility companies now need an of site space to complete the electric Transformer to enable the individual meters. 

6 of the original purchases have sold on and all have paid the capital Gains even though none of them made a profit but lost 30%  to 40% of the property price + the inprovement they made to their individual property.

Where do we stand if we now sell on because we have waited 9 years for the local council & Utility company to get their act together & grant the Habitation Certificate. 

Just one purchaser lived perminently in the unit they purchased and have sold on.

We are so confused about this problem that now just feel te only way is to sell on but is inversting in a home in Spain worth the bother. Now in our 70s will we ever see the freedom we dreamed of.

Poedoe.  I believe the rules on assessing the current value of property, based in the cadastral value, have been amended so as to avoid apparent gains when none have been realised.  

Perhaps Maria would be good enough to clarify

Keep all receipts for work done when you buy a property. Property prices may go up.

If you make a capital gain all the expenditure on work on the property can be deducted from the capital gain.

My Lawyer asked if I had receipts for work done. I had kept my receipts but many (being till receipts) had faded to nothing. My lawyer 'added these up' somehow and was able to half the capital gain and thereby half the capital gains tax I paid.

"If you mean the 3% retention tax ( to make sure you have left no debt)" - Just to be clear, the 3% retention is in lieu of any potential Capital Gains Tax arising from the sale - not to cover any other outstanding debts.

From a very reliable source on another forum: "AEAT has six months from the date of the declaration to refund any part of the retention that is due. If there is an error in the declaration the clock starts again from the date that the error is corrected. The claim will be rejected if the payment of annual non-resident taxes is not up to date."

It is in Hacienda's interet to pay on time, as they have to pay interest if it's overdue - so if you haven't received it within 6 months, chances are there's an error! You have to have paid your non-res tax for the previous year - so if youdon't get your refund before the end of this year, then yes, youwill probably have to pay the tax for 2015 - but you are liable for it anyway if you sold in 2016, so pay it in January ASAP!

Keep all receipts for work done when you buy a property

Of course to have any hope of a claim they must be 100% legal receipts and include IVA, so work done by 'handyman Tony'  from down the pub is out !

Any work done by Tony down the pub is unlikely to have added any value anyway!!

Hi Roberto Any idea please of the best telephone for me to chase if there are a,u issues with the form / idea when I will be refunded so I can chase rather than relying on the solicitor to do it

Unless you a) speak fluent Spanish and b) are extremely lucky and get a clerk who actually gives a sh*t and who doesn't hate their job and everybody else in the entire known world, I don't think you'll get far with Hacienda, which is staffed almost entirely by fascist a***holes, but for what it's worth here are some contact numbers etc. 

Good luck, you'll need lots of it 

The only way I have been able to get any reaction from Hacienda (an error by a gestor meant in June I paid almost 3,000 euros more in tax than I should have, so I am looking for the refund)  is by using a friend who is employed by Hacienda at a fairly senior level, and even that is not provimg to be straightforward.

So as Roberto say, good luck to those who try.

Hi

Just to update you I got my tax refund this week, paid into my U.K account having sold last April. I didn't get an interest for late payment but just pleased that I have the refund and it's all over. Good Luck to everyone waiting.