# Selling a Property in Spain



## perciverance (Jul 20, 2010)

I have recently sold in Spain and my Solicitor told me the tax has to be paid up front even if none is owed (sold less that I bought). I was also told there may be some time before the tax authorities returned the money (she has applied for it I am told). Is all this correct? I am still waiting to be told it is ready for me and it is a reasonable amount.

Thanks for any feedback.


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## bakeja (May 26, 2009)

perciverance said:


> I have recently sold in Spain and my Solicitor told me the tax has to be paid up front even if none is owed (sold less that I bought). I was also told there may be some time before the tax authorities returned the money (she has applied for it I am told). Is all this correct? I am still waiting to be told it is ready for me and it is a reasonable amount.
> 
> Thanks for any feedback.


If buying from a non-resident, homebuyers have to holdback 3% of the purchase price and pay it to the Spanish tax authorities instead of the sellers within one month of the purchase. This is held by the Spanish tax office against any capital gains liability on the sale and is returnable if the seller (or their solicitor in this case) files a Modelo 212 tax declaration within 3 months of the sale and this demonstrates there is no capital gain (or one of less than 3%). 

It may take a while and they may wish to see some additional paperwork. I know of a case which has taken the best part of a year partly because the tax people wanted to see all the non resident tax returns relating to the property going back to when they bought the place.


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## perciverance (Jul 20, 2010)

But I'm the seller. Should I not have paid anything?


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## bakeja (May 26, 2009)

perciverance said:


> But I'm the seller. Should I not have paid anything?


 Yes that's the point - on sale 3% of the agreed price is paid to the Agencia Tributaria instead of you until the capital gains tax is sorted out. It's a rule designed to stop people skipping the country without paying the capital gains tax which was the norm prior to its introduction. See this guide:

Spanish capital gains tax retention on property sales by non-residents | Spanish Property Insight Blog


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## perciverance (Jul 20, 2010)

Ah, so as a seller I had to provide the 3%. I guess I will just have to wait untill my solicitor tells me it is returned. Thanks.


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## jmhalton (Apr 4, 2008)

So, I have been told by my Solicitor that when I sell my property that as a Resident of Spain, the Agencia Tributaria will withhold 3% of the agreed Capital 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 at the current time please?

She also advises me that I should retain my Residency for at least 6 months or until she advises me when to change it after my return to the UK. Since they could calculate what I owe them in TAX calculated as a Non - Resident selling a property in Spain. 

We live in the Community of Valencia and at the age of 71 and having lived in spain for 6 years would not be liable for Capital Gains tax anyway.

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


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## perciverance (Jul 20, 2010)

jmhalton said:


> So, I have been told by my Solicitor that when I sell my property that as a Resident of Spain, the Agencia Tributaria will withhold 3% of the agreed Capital 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 at the current time please?
> 
> She also advises me that I should retain my Residency for at least 6 months or until she advises me when to change it after my return to the UK. Since they could calculate what I owe them in TAX calculated as a Non - Resident selling a property in Spain.
> 
> ...


Well, I don't know who the Agencia Tributaria is (presumably the tax man?). I was not a resident so maybe the situation for me is different. However, it's nearly a year now so here's hoping. Other comments welcome.


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