Payment of 3% When a Non Resident's Property is Sold

Information and questions about the Law in Spain and Andalucia.
Len S
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Location: Wirral, Merseyside and Alcaucin, Spain

Payment of 3% When a Non Resident's Property is Sold

Postby Len S » Fri Sep 14, 2018 8:42 am

When a non tax resident sells a property is the payment of the 3% retention to the tax authorities the ULTIMATE responsibility of the purchaser or the purchasers solicitor who is acting for the purchaser in the sale. I ask as my wife and I have sold our Spanish property and the solicitor acting for the purchaser is making an incompetent mess of the payment.

Many thanks in anticipation.

Beachcomber
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Re: Payment of 3% When a Non Resident's Property is Sold

Postby Beachcomber » Fri Sep 14, 2018 10:07 am

Spanish lawyers rarely take responsibility for anything. It is the buyers who will incur the wrath of AEAT and be subjected to a considerable fine if the retention is not paid or if it is paid after the period allowed for payment.

You will not be able to complete your own Capital Gains Tax return until you have a copy of the form 211 showing that payment has been made.

Alcala Barry
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Re: Payment of 3% When a Non Resident's Property is Sold

Postby Alcala Barry » Tue Jan 08, 2019 4:45 pm

Beachcomber

I am sure this has been covered somewhere, but I can't find what I want.
How exactly is CGT calculated and who acutually pays it to the authority?
For example, let's say we bought our house for €120,000 and sold it for €195,000. And assume we spent say €25,000 on improvements. Do we say, difference between purchase and sale is €75,000, minus £25,000 = €50,000. So 3% of that is €1,500.

Have I go that right?

By the way, have lived in the property for over 3 years and I am over 65.

Cheers
Barry

Beachcomber
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Re: Payment of 3% When a Non Resident's Property is Sold

Postby Beachcomber » Tue Jan 08, 2019 4:55 pm

The retention is 3% of the sale price so, in your example, the retention would be €5.850.

You are exempt from Capital Gains Tax in the following circumstances:

You are over 65 years of age
You can prove have lived in the property as your primary residence for at least three years
You can prove that you are a fiscal resident of Spain.

If you are a fiscal resident the 3% retention is not applied.

There is more information on the 3% retention for non-residents in the FAQ:

viewtopic.php?f=42&t=27591&p=256749#p256749

Please read it then ask again if you have any further query.

Alcala Barry
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Posts: 203
Joined: Sat Oct 19, 2013 4:30 pm

Re: Payment of 3% When a Non Resident's Property is Sold

Postby Alcala Barry » Wed Jan 09, 2019 10:18 am

Beachcomber

Thank you for that, you have made it very clear. Appreciate it.

Barry


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