CGT REFUND & IRNR 2019

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Icaru
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CGT REFUND & IRNR 2019

Postby Icaru » Sat Aug 18, 2018 11:26 pm

This has been a very helpful and useful forum in the years we lived in Marbella. I have hopefully only one last question to put to anyone in the know.

We sold our Spanish property at a loss on April 23, 2018 and all taxes due to date are paid. Our solicitor said we should expect a refund of the plus valia and the CGT in approximately six months. We are now at four months and have received neither.

However, I realized that we will still owe the 2018 IRNR for the nearly four months we were still non-residents in Spain. This fact may hold up the refunds due. Can we pay this amount now or must it be paid after 31.12.18?

Many thanks for your help!
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Beachcomber
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Re: CGT REFUND & IRNR 2019

Postby Beachcomber » Sun Aug 19, 2018 7:07 am

The period for payment of non-resident income tax for 2018 is 1st January 2019 to 31st December 2019 and you cannot pay it prior to this date neither can it's non-payment be used as a reason for not refunding the 3% retention

Assuming the capital gains tax return claiming the refund of the retention was made correctly it should be repaid within the six months period otherwise the tax office has to pay interest on late repayment.

The plus-valia is something different and is the responsibility of the local authority. Most of them are placing obstacles in the way of the refund of this tax and are requiring procedures and paperwork that may well cost more to obtain than the amount of tax paid.

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Icaru
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Re: CGT REFUND & IRNR 2019

Postby Icaru » Sun Aug 19, 2018 7:38 pm

Muchas gracias!
I am not an Athenian or a Greek, but a citizen of the world. - Socrates

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Re: CGT REFUND & IRNR 2019

Postby Icaru » Wed Oct 24, 2018 6:54 am

We received the PlusValia refund in 5 months but not the 3% CGT even though we owe nothing to the agencia tributaria. Our solicitor today said that the tax office has 1 year to refund the 3% before interest accrues. Comment?
I am not an Athenian or a Greek, but a citizen of the world. - Socrates

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Re: CGT REFUND & IRNR 2019

Postby Beachcomber » Wed Nov 14, 2018 9:13 am

Just wondering if you have received your CGT refund yet. Although you sold in April the CGT return my not have been submitted until July or August because the purchasers have one month in which to pay it to the tax office and the seller has a further three months in which to submit the return. The clock starts when the CGT return is submitted not when the property is sold.

I did four CGT returns within a short space of time just over six months ago. All were negative and all have now been repaid. Three were repaid within a few days less than six months and the other one was just over and was paid with interest.

In June I also reclaimed a sizeable sum for someone in respect of taxes that were paid incorrectly over the course of four years by an asesor fiscal. (He obviously had not read the A.com FAQ). The full amounts were repaid in October with a considerable amount of interest running from each year that the declarations were submitted even though the fault did not lie with AEAT but with the hapless and inept asesor fiscal. I hope they charge the interest to him!

In more than thirty years the longest wait for a repayment for a correctly submitted CGT refund claim has been eight months. One took just over a year because the sellers were not married and a joint declaration had been submitted in error. Once it had been resubmitted correctly with individual declarations it was repaid within a few weeks but without interest because in the case of a faulty declaration the clock starts again from the date that it is resubmitted correctly.

Do not believe anyone who tries to insist that these refunds routinely take up to eighteen months or more or that they are never paid. It is just not true. It is more likely that they have been completed incorrectly or have never been submitted and, just to reiterate, the retention is not refunded as a matter of course but has to be claimed proactively by way of a capital gains tax return.

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Re: CGT REFUND & IRNR 2019

Postby Beachcomber » Thu Dec 13, 2018 4:07 pm

A little more information on this subject.

I did a retention reclaim for a sizeable sum in May and because it was larger that what is probably the average claim it was subject to rather more scrutiny and, as a result has only just been repaid but with nearly €300 interest so anyone that tries to say that it routinely takes eighteen months to be repaid or that interest is not paid until a year has passed is simply telling a blatant lie.

It just annoys me so much that these so-called 'professionals' get away with providing such an inept and inadequate service, for which they charge a fortune, simply because their clients (victims) do not have the wherewithal or the inclination to challenge the shoddy manner in which they are treated.

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Re: CGT REFUND & IRNR 2019

Postby Icaru » Fri Jan 04, 2019 8:43 pm

We finally received our 3% refund about 7 months after the sale of our apartment. It had been held up for a mistake in the 2017 IRNR filing. Now however, I have a small problem. I accidentally paid my IRNR twice for 2017 and need to request a refund. I have now spent 3 hours looking everywhere on the agenciatributaria.es website for the correct form and cannot find it. I tried form 210 - devolución - but that does not work for IRNR (code 02). Forms 200 and 206 also don't seem to be correct. Does anyone know what is the modulo no to request a refund??

Many thanks and happy New Year !
I am not an Athenian or a Greek, but a citizen of the world. - Socrates

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Re: CGT REFUND & IRNR 2019

Postby Beachcomber » Fri Jan 04, 2019 9:14 pm

There is no form for this. You need to write an application from scratch which you can submit online with a digital certificate otherwise you will have to present it to the tax office in person.

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Icaru
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Re: CGT REFUND & IRNR 2019

Postby Icaru » Fri Jan 04, 2019 11:22 pm

I tried again and finally did find a place where I could submit "other supporting documents" and a written request. Hopefully this works.
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Re: CGT REFUND & IRNR 2019

Postby Beachcomber » Sat Jan 05, 2019 8:47 am

If you can access the tax returns online just make a note of the CSV numbers and include them in your application. In this case you do not need to attach any supporting documentation. Do not forget to include a bank account number into which the refund can be paid.

The tax office has six months to respond just as in the case of a correctly submitted application for a refund of the 3% retention.

I did this recently for someone whose gestor had completely messed up their non-resident tax returns for four years. They had to pay them again with fines and surcharges but interest was paid on the refund of the incorrectly paid taxes from the end of each relavant year and covered some of the extra they had to pay. They didn't get a refund of the gestor's fees though!

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Re: CGT REFUND & IRNR 2019

Postby Red Dragon » Fri Feb 08, 2019 12:50 pm

We sold our property at the end of January 2019, and have no plans to return to Spain. I am aware that there is an outstanding bill to be paid for 2018 IRNR tax, which couldn't be paid until after Jan 1 2019 (we were non-residents and never rented our apartment out). I have always completed Form 210 myself and paid in cash at the bank, so we don't have a digital certificate to pay it online either. We are owed the 3% CGT back as we didn't make a profit on the sale, and out lawyer has confirmed we will receive this. Will the payment for 2018 income tax (and indeed the first 20 days of 2019) be retained automatically from the 3%?

Incidentally, I want to thank this forum for all of the extremely helpful information I have gleaned from it over my 16 years as an owner.

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Re: CGT REFUND & IRNR 2019

Postby Beachcomber » Fri Feb 08, 2019 1:36 pm

Forget about 2019. This isn't due until the end of 2020 and AEAT will not expect to receive it.

By the same token they should not expect to receive 2018 either because the final date for payment is 31st December 2019 and you should receive the refund of your retention around six months from the date of the submission of the CGT return provided that it has been submitted correctly. Usually, if non-resident tax is outstanding, they just do not make the repayment and wait for you to enquire than they will tell you that some tax is outstanding although it has been known for them to deduct the amount due from the amount refunded.

They are liable to pay interest if repayment is not made within six months of the CGT return being submitted. However, you have to be wary of the time scale. The purchaser has one month in which to pay the amount of the retention to AEAT then the seller (you) has another three months in which to make the CGT return so this could take the date of the deadline for its return up to November and they may consider that it is worth paying interest to delay the repayment until early in 2020 when they could legitimately claim that the tax for 2018 had not been paid.

Red Dragon
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Re: CGT REFUND & IRNR 2019

Postby Red Dragon » Fri Feb 08, 2019 4:20 pm

Great explanation, thank you!

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Re: CGT REFUND & IRNR 2019

Postby Red Dragon » Mon Feb 11, 2019 11:24 am

May I ask a further question regarding reclaim of Plusvalia tax. The calculation for payment of ours was as follows:
Yearly percentage of increase, 2.3% p.a. for 16 years ownership = 36.8%
Catastral suelo for 2018 was 34817.05 so at 36.7% the base imponible is €12812.67
With a tax rate of 20% then €2562.53 paid to Benahavis Council through our lawyer.
We bought our property at €189,500 in 2002 and sold at €205,000 in Jan 2019, but with selling costs, we are netting approx. €188K, so a very small loss.

Any idea of the calculation to know if a refund is due on the Plusvalia tax? I can't seem to find anything that explains how this works. I just want to know if I would be wasting my time pursuing this.

Many thanks for sharing your experience.

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Re: CGT REFUND & IRNR 2019

Postby Beachcomber » Mon Feb 11, 2019 2:06 pm

Different municipalities deal with this matter in different ways, nothing is set in stone, but if the amount in the escritura of sale is higher than that in the escritura of purchase it is not likely that you will be able to recuperate the plus valía.

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Re: CGT REFUND & IRNR 2019

Postby Red Dragon » Mon Feb 11, 2019 2:39 pm

Understood, thanks!


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