PDA

View Full Version : Non resident 5% retention on property sale



keithBT
10-11-2005, 10:38 PM
We sold a property last year for 80,000 euros. Our solicitor deducted 5% ie 4000 euros for the deposit to the tax authorities for capital gains. Our original purchase price was 69,116 euros according to the copia simple. QUESTION .(1)..Will we at some stage receive some sort of paperwork from the authorities with a calculation of the real tax due, and if it is less than the 5% deposited how do we receive the difference? (2)_It is approaching a year now since the sale - how long does it usually take?

Expert advisor
10-17-2005, 10:47 AM
The deducted amount of 4.000 Euros (5% of 80.000 Euros) was paid to the Spanish Tax Authorities on account of your Capital Gains Tax. The amount to be paid is calculated on the 35% of the profit made when selling. If the amount you paid was less than what you really have to pay, you will receive the liquidation from the Authorities at some stage. If what you have paid fully covers the tax and there is a balance left, this should be applied for to the Authorities, either by your solicitor or yourself. Unless you apply for the devolution, it won´t be paid back directly to you.

We remain at your entire disposal to any matter you require at our offices in Torrevieja.