# Selling spanish property as a Resident of Spain



## jmhalton (Apr 4, 2008)

My Spanish Solicitor advises me that when I sell my property since as a Resident of Spain, the Agencia Tributaria will withhold 3% of the agreed Capital paid to me for any period of time up to one year whilst they ensure that all owing taxes are fully paid up to them. Is this correct please? because I have heard a rumour that this is now illegal.

I am also advised to retain my Residency for at least 6 months or until she advises me when to change it after my return to the UK. Because as soon as I changed to non-resident they would calculate what I owe them in TAX as though I were a Non - Resident selling a property in Spain, Perhaps costing me much more. 

We have lived in the Community of Valencia for 6 years and now well over retirement age therefore would not be liable for Capital Gains tax anyway (should this be the case!).

I would be very interested in your response please... thanks.. 
:ranger:


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## gus-lopez (Jan 4, 2010)

I'd get a new solicitor. The 3% retention ( held back by the buyers solicitor & paid in to the hacienda in your name ) is for the payment of capital gains tax & is not retained if the seller is over retirement age ! An aquaintance of mine sold a few weeks ago , over the age of 65 , no retention full price received . ( & he didn't have a tax certificate either ! ) Another thing is that if you hold 'residencia' & have an up to date tax certificate then there should not be any deduction anyway as you have 2 years to roll-over the profit ( if there is one ! ) into a new property ( not necessarily in spain ) before cgt is payable .


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## Stravinsky (Aug 12, 2007)

Also if you are investing the money in a new property, Spain or UK, its not payable
(Terms and conditions apply!)


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## jmhalton (Apr 4, 2008)

Thanks you for your helpful replies Gentlemen!


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