Is it worth chasing up the 3% retention when selling.

Information and questions about the Law in Spain and Andalucia.
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concorde
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Is it worth chasing up the 3% retention when selling.

Postby concorde » Wed Apr 29, 2015 10:25 am

Bit of a strange topic title but we are looking to sell our holiday house, partially due to health problems.
We have had this little bolt hole for nearly 9 years, and it looks like we, like lots of others will have to sell at a big loss due to the property market.

The question I am really asking is, from what I read, it seems that the Spanish taxman seems very reluctant to release this retention quickly, and that it could entail frequently visiting the tax office with paperwork etc in person which could prove very difficult if we have left Spain as soon as the sale was complete.
If the amount retained doesn't justify numerous visits, keeping a bank account open etc, is it possible to forget it, or does it have implications with the U.K. tax?
I'm always disappointed when a liar's pants don't actually catch on fire.

infoseeker
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Re: Is it worth chasing up the 3% retention when selling.

Postby infoseeker » Wed Apr 29, 2015 12:15 pm

Why would anyone not want to chase up a significant amount of money?
3% of a modest property is a lot of money
If you have a solicitor in Spain, you shouldn't need to keep coming out to sort the paperwork.
There is no reason why you cant have the Money paid into a UK bank if Hacienda is given the details.
Of course, there is always the possibility that you owe Hacienda more than the 3%!
In that case, hacienda will contact you, never fear!

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costakid
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Re: Is it worth chasing up the 3% retention when selling.

Postby costakid » Wed Apr 29, 2015 1:22 pm

Give your solicitor power of attorney and let him chase it. Anything is better than nothing.

Beachcomber
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Re: Is it worth chasing up the 3% retention when selling.

Postby Beachcomber » Wed Apr 29, 2015 4:39 pm

Providing the paper work has been done properly and you have been paying your non-resident taxes AEAT must repay the retention within six months otherwise they have to pay interest.

As long as the person acting for you has identified him/herself as your representative on the form 210 reclaiming the retention there should be no need for a power of attorney and he/she will receive notifications if there is any query.
Let's go Brandon!

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concorde
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Re: Is it worth chasing up the 3% retention when selling.

Postby concorde » Thu Apr 30, 2015 3:04 pm

Thanks for the replies, I'm afraid I always tend to look at the worst case scenario, and am constantly amazed when things work out right! Even more so in Spain.
It is very early days yet concerning a sale but I would like to try and get all paperwork needed together.

Realistically it could be a very long time before anything happens, just because you have neighbours who rent the house opposite, waiting on your doorstep to view, could be more curiosity than anything. Actually they seemed more interested in our other neighbours flourishing green plants in their yard, certainly more than the allotted legal amount :shock:

I haven't read lately about getting an energy certificate, is that still a legality.
One article on selling a spanish house seemed to suggest this

The property’s CEE, or Certificado de Eficiencia Energética (energy efficiency certificate), if you occupy it for more than four months a year. If this is not the case, you simply have to sign a declaration to that effect.

Can't see that being right!
I'm always disappointed when a liar's pants don't actually catch on fire.


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