Did you know that you can request a 3% tax refund if you have suffered a loss of funds after the selling of your spanish property? This 3% retention is requested by the Spanish Authorities in order to cover a possible income that you may have with the sale of your property. To get started, all you need is to hand your legal representation the dates and prices of the purchase and of the sale. They will have to study if in your case have or have nor a profit in your favor. If you have no profit in your favor, you can request to the Tax Authorities the refund of this amount.
In order to request the refund, the Tax Authorities oblige you to be up to date with the presentation of the Non Resident Tax (a yearly Tax calculated on the Catastral Value). If you haven’t paid this Tax during your period of ownership, your legal representatives can assist you with all the relevant forms for the Tax Authorities for the last 4 years. Please be informed that you will not be required to pay any Taxes outstanding, as the Tax Authorities off set this amount against the 3% retained, in which case you recover the 3% less the amount of the outstanding taxes.
We reached out to the established and well respected law firm Martinez Echevarria to find out how much this should cost, they told us:
Our Law firm offer you the possibility to assists you in this process and our fees in this case are divided in two parts:
- For the preparation and presentation of the Non Resident Tax forms, in order to update your situation in front of the Tax Authorities, our fees depends on how many years we should prepare, but the maximum will amount to 500 euros plus VAT if we should prepare all the years necessaries ( last 4 years).
- For the assistance in the preparation and presentation of the 3% retention claim, our fees amount to 500 euros plus VAT.
In order to make the process easier, it will be better if we can open on your behalf a Bank account in Spain in all your names, if you don´t have one already. Thus, you will receive all the money in your new bank account. Also, your Bank should issue you with a certificate of ownership of your Spanish Bank Account, as requested by the Tax Authorities. Please also be informed that the refund will take about 8-10 months since presentation of the request.
If you can provide us with the information about your situation as regards the Tax Authorities, we can prepare a brief summary with the figures of the Non Resident Tax necessary to compensate in order that you can analyse the situation and the convenience of make that claim for the refund.