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
Tax refund on property
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- Andalucia.com Amigo
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- Andalucia Guru
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Re: Tax refund on property
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:
viewtopic.php?f=42&t=27591
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:
viewtopic.php?f=42&t=27591
Let's go Brandon!
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- Andalucia.com Amigo
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Re: Tax refund on property
Many thanks Beachcomber appreciate the advice.
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