Tax refund on property

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Terryd1963
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Tax refund on property

Postby Terryd1963 » Thu Sep 10, 2015 9:06 am

Hi Guys,

Just looking for a bit of advice really, I sold a coastal property in Mijas Costa and then I purchased a country property in the Gaudalhorce region of Malaga in December 2013 and paid the 3% property tax on the property I sold as everyone does, however I was on the understanding that if I purchased a new property then I could claim back the 3% on the old one, and I assumed this would be from the Hacienda in Malaga. Up to press nearly 2 years have passed and I haven't had a refund. So my question is can someone give me a few ideas on how to reclaim this money.

Thanks in anticipation Terry

Beachcomber
Andalucia Guru
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Joined: Tue Jun 15, 2004 11:11 pm
Location: Guadalhorce Valley

Re: Tax refund on property

Postby Beachcomber » Thu Sep 10, 2015 12:03 pm

If a 3% retention was made from the proceeds of the sale then the sale was made as a fiscal non-resident. The tax break for reinvestment of funds in another property only applies to fiscal residents.

You should have completed a capital gains tax return on the sale of the old property within three months of the retention being paid to AEAT and either reclaimed the 3% or paid the balance if the actual tax on the gain exceeded the 3%. Whatever was the result of the CGT declaration it has no bearing on the new property except that if the 3% did not cover the actual CGT on the old property AEAT will probably pursue you for the difference in due course. They could also fine you for failing to make a CGT return even if the balance had been in your favour and there had been no tax to pay.

For more information on Capital Gains Tax for non-residents see here:

http://www.andalucia.com/forums/viewtopic.php?f=42&t=27591

Terryd1963
Andalucia.com Amigo
Posts: 29
Joined: Sat Oct 26, 2013 3:59 pm
Location: York and Guaro
Contact:

Re: Tax refund on property

Postby Terryd1963 » Sat Sep 12, 2015 7:19 am

Many thanks Beachcomber appreciate the advice.


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