A warning for those selling in Spain!

[LiLoLil]

It seems that despite my best efforts that unless you have a residency card you WILL pay the 3% retention at the notary!

Having been told, researched and adviced that this would not be the case IT IS!

The notary will NOT accept certificates from the tax office as proof you are a tax resident.

Apparently, according to the notary, there is a ruling from Luxembourg regarding this issue and a residency card is the ONLY form of proof that you are resident. Whether you pay tax or not whilst holding a residency card does not matter!

I have a real problem with this and will at some point probably get over it but after spending 4 hours in the notary for the 10am appointment to signing at 2pm. Having to return to my belongings to retrieve my cheque book so that I can write a cheque for the 3% because the purchasers are paying by bank draft for the full amount.

Plus trying to explain that I really do not need a residency card to the lawyers, notary and various clerks today has just been a complete nightmate.

Had I not paid the 3% then the sale would have fallen through and that would have been that.

I just about managed to have an entry put into the escritura that I was paying the 3% under duress as I felt that it was not necessary and discriminatory and against EU law.

Not that that will do much good but hey I made a point.

In a few days time I am sure that I will be much calmer but thought I would warn all those looking to sell or in the process of selling and for those how advised me that I did NOT need a residency card. Sorry you do!

[pigs-might-fly]

Crikey - he took a cheque

[BENIDORM]

I can't understand why anyone who is making Spain their permanent home, wouldn't want to obtain a Residency card, and it certainly does have some advantages,it seems to smooth the process of many minor transactions.....I'm sure that the issue of European home owners not being treated the same as residents in Spain is open to debate,and I am certain that at some point these issues will be resolved, but don't 'hold your breath'.....

[julian]

you should have shopped around for a notary who would accept the certificate, they all have their own ways of doing things.

[hillybilly]

They sure do. Last week when I was buying, the notary's office wanted my Hacienda etiquetas (half a sheet of them!). Fortunately they had forewarned me but I still have no idea why they would need these when one is buying...

[Lorraine - Mijas]

Last year I sold using only a fiscal residence cert, with absolutely no problem, residencia card had expired and a proof of re application would not be accepted.
Maybe the rules have changed or maybe I got an easier ride due to the notary being in Marbella

[BENIDORM]

It would appear that all the lawyers here in Spain went to different schools,I've asked numerous questions to different lawyers over the years and always get different answers to the same questions...I now always ask them to put in writing all requirements for whatever I'm doing.....Frustrating all the hassle though , isn't it !

[campo babe]

Benidorm's comments seem to agree with my husband's opinion regarding Spanish lawyers.

He maintains that if you want to find out anything you have to ask 5 lawyers and then take the opinion offered by the majority!!

However, maybe we need to include Notaries in the equation as well!!

[Mixter]

What are the criteria to hold a Residency Card?

[Beachcomber]

A lot of patience!

A residencia is usually one of the documents you need to produce in order to obtain a certificate of fiscal domicile and you do have to have a residencia, at least at present, if you are retired or living on independent means as has been discussed in another thread.

You do not necessarily have to have been paying tax in order to obtain a certificate of fiscal domicile because you do not need to submit a tax return as a resident if your income is below a certain level although it is advisable to submit a negative return.

However, if you are going to claim that this is the case you have to be careful that your lifestyle does not suggest otherwise.

[pigs-might-fly]

Beachcomber - do you happen to know the income level below which it is not necessary to file Spanish Tax returns?

We have always done so and paid a modest amount of tax in addition to our UK tax deducted at source, but last year our solicitor's accountant said we did not need to file as our income was under the threshold. Our income is all from pensions and we are both (well) over 65!

A further thought - as pensioners we are not liable to capital gains tax on our primary residence, providing we have lived there for three years.
Does this mean that if we sell, there will be no retention as no tax is due?

[Beachcomber]

If you are residents with fiscal domicile there would be no retention anyway regardless of your age.

I do my own tax returns but the PADRE program works it out for me. I think the income tax threshold is around €18.000 but it is advisable to submit a tax return even if it is negative.

Sid will be able to tell you much more about both of these points which I am sure he will do when he next comes on line.

[El Cid]

The threshold is €9000. That is for total family income.

If you are working and paying Spanish PAYE the limit is €22000.

On an income of €9000 the personal allowances add up to €9050 so there would be no tax due if you did submit a return. Over 65's get another €900 as an age allowance. Couples, over 65, declaring jointly can earn up to €14500 before paying tax but would have to submit a return.


Sid