Sold a Property now where's our money?
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We sold a property in 2019, our solicitors held the 3,000 euros as normal, we made no profit on the property as we only had it a couple of years. We have submitted all the relevant docs to off set the costs and expenses and we just about broke even. We received a small sum of money advised I was a tax return from the Spanish authorities on the sale of our property. We have contacted the solicitors several times for our 3,000 euros to no avail, they don't even reply to us. Not sure how to get this money back from them now?
Body p
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As a non resident they would have kept 3% of the selling price to pay for outstanding taxes such as capital gains.
If the small sum you received back was from the tax authorities then I assume the rest was kept for those taxes.
You may not have made a gain on the price but they can also get you for the gain on the price of the land called the plus valia tax. Perhaps the money you gave the solicitors went to pay for that.
It is also difficult to get money back from the tax people if you have changed or closed bank accounts since selling. They will make the payment to the account they have listed for you but, if not accepted, they will not try again.
Bit awkward if the solicitors won't reply to you, though.
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happy wheels
You should have a contract agreeing the terms from the beginning to avoid this situation. However, it is quite difficult to get your money back from the tax office if your bank account has been closed since the sale. They will deposit money into the account they provided, but they won't try again if it is rejected.
This message was last edited by excitableran on 1/2/2025.
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If you have closed or changed bank accounts after selling, it is also difficult to recover the money back from the tax officials
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In this case, it seems like the €3,000 was retained as part of the standard procedure during the sale of the property, which is common when dealing with Spanish property sales. The Spanish authorities hold this amount to cover any potential capital gains tax, but since you made no profit and essentially broke even, the amount should be refunded to you.
Here are the steps you should take to recover the €3,000:
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Confirm the Situation with the Spanish Tax Authorities: If you haven’t done so already, confirm with the Spanish Tax Authorities (Agencia Tributaria) that the €3,000 was withheld correctly and that you are entitled to a refund due to the lack of capital gains. Ensure they have processed the return and confirmed the refund.
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Request the Refund in Writing from Your Solicitors: Draft a formal letter to the solicitors, requesting the return of the €3,000 that was held during the sale. Be clear about the fact that no profit was made on the property and that you are entitled to a refund. Mention that you have already received the tax return from the authorities, which indicates no capital gains. Send this letter by registered post and keep a copy for your records.
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Follow Up Persistently: If you do not get a response, follow up regularly. Keep all correspondence and document your efforts to contact them.
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Contact the Spanish Bar Association (Colegio de Abogados): If the solicitors are unresponsive, you can contact the local Bar Association in Spain where they are registered. They can investigate the issue and may be able to assist in resolving the matter.
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Consider Legal Action: If the solicitors continue to refuse or ignore your requests, you may need to seek legal action. Consult with another Spanish lawyer who specializes in property law and recovery of funds. They can guide you through the process of recovering the €3,000.
Solicitors are legally obligated to return any funds that are not required for the sale or taxes, so you should be entitled to this refund. If they are not responding, taking these steps will help ensure that you get your money back.
_______________________
Maria L. de Castro, JD, MA
Lawyer
Director www.costaluzlawyers.es
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