Non Residents Property Sale Tax

[Tamkid]

Hi Billymac, did you use this lawyer for the sale of your property, or did you contact him specifically to reclaim you 3% potential capital gains tax?

[billymac]

Hi Billymac, did you use this lawyer for the sale of your property, or did you contact him specifically to reclaim you 3% potential capital gains tax?

I did not use him for the sale of the property, to my knowledge he is not a lawyer. However, he has handled my tax returns on the island for several years.

I note from your original post that you sold your property c 8 months ago. As far as I know, the application for the return of the 3% witholding tax has to be applied for  within 4 months of completion of the sale. Did your lawyer/tax representative do that? I assume that they did, however it might be worth checking with them that they actually did so. 

[Tamkid]

I was under the impression that the lawyer had put the correct form forward to the tax office at the time of the sale, only when I double checked FIVE months later did I find out that she had not.

She reckoned it would be OK to still apply, and charged me 150 euros for the privilege. I cant remember the ins and outs, but when I checked myself, I believe they reduce the amount of refund for a late application but supposedly still return the remainder of your money. I think I will email your rep and confirm that one way or the other.

[billymac]

Tamkid,

One other thing occurs to me. I think you sold your property c 8 months ago. So you will be liable for the ' non-resident ' property tax for the part of the tax year 2016 in which you owned your property. You can only submit your 2016 return from 1/1/17 onwards. If you have already done so, then fine, but if you have not, then it could be a reason for the Hacienda not to process your claim for the refund of the 3%.

[Archer]

Thanks Billymac. How much did your administrator charge for this return?

[robins nest]

Don't despair! We sold in March 2015 and have just received our tax refund this week