How to reclaim 3% tax taken when you sell a property

[ashworth]

How do you claim back the 3% tax of the sale price taken at the Notary of a Villa on Fuertevenrura golf course after selling at a huge loss.

[Deso]

Whoever handled the sale for you should be able to apply for you.

Don't hold your breath though as it can take years, if ever, to get it back.

[TamaraEnLaPlaya]

I'm sure I read somewhere that there are very strict and tight timescales for submitting the paperwork in regards to this so make sure you deal with this immediately!
The good news is that a judgement has been passed that the tax can no longer be imposed when you have sold at a loss. However until the actual law has been redrafted you still have to pay and reclaim! (I'm sure I read that this applies retrospectively back to May 2013.
Good luck!

[Can the Man]

Whoever handled the sale for you should be able to apply for you.

Don't hold your breath though as it can take years, if ever, to get it back.

5 years on and still waiting

[jill tie]

Whoever handled the sale for you should be able to apply for you.

Don't hold your breath though as it can take years, if ever, to get it back.

5 years on and still waiting

How do they get away with it?  why has someone not taken them to court?  saying that they would ignore probable ignore that as well.

[calculator]

I'm sure I read somewhere that there are very strict and tight timescales for submitting the paperwork in regards to this so make sure you deal with this immediately!
The good news is that a judgement has been passed that the tax can no longer be imposed when you have sold at a loss. However until the actual law has been redrafted you still have to pay and reclaim! (I'm sure I read that this applies retrospectively back to May 2013.
Good luck!

Rubbish!!

You might be referring to the payment of "plusvalia", which now need not be paid when a loss has occurred.

The 3% retention relates to fiscal nonresidents and is not a tax.

Yes, there is a time limit for submitting a request for its return, possibly 3 months from sale of property.

3% retention happens at the notary - not possible to evaluate a profit or loss at that stage, from an A.T. point of view.
Plusvalia is paid after the sale, independently of anything else.

[TamaraEnLaPlaya]

Beg your pardon, got my taxes mixed up!
The 3% retention for non-residents is against Capital Gains Tax Liabilities, not plusvalia which is no longer payable on a loss.
Apologies for confusing anyone.

Found the source again now (which I couldn't do the other evening, resulting in my misleading post):

The rules are different, though not discriminatory, for non-residents. When a non-resident sells a property, CGT is not the main immediate issue because non-residents are required to leave a 3% retention at the point of signing in lieu of final settlement of any CGT due. This 3% non-resident retention is withheld at notary and is deducted off the whole sale price. It is paid by modelo (official form) on the vendor`s behalf to the tax authorities, and can be recovered by the submission of a second, related modelo within three months: a copy of the first modelo needs to be submitted along with the claim, and so the vendor must ensure that he has his copy from whoever paid the 3% on his behalf. Repayment will be made if all tax affairs are up to date, including the CGT against which the retention was made: in other words the CGT must be paid before the 3% is reclaimed.

[Tamkid]

Hi Ashworth, I'm in the same boat, the time period for putting in a reclaim form is 3 months then the they start to fine you for late application (apparently). If you are up to date with paying your non residents tax then you shouldn't have a problem, if not, you will have a problem, as I found out. I had my solicitor complete a reclaim form at the time of sale, I was charged 150 euros. I was naïve thinking they would deduct any outstanding non payment of residents tax from the 3% and then I would get the remainder of the 3%, this is not the case, they withhold the 3% until you have paid up.

I have done that now, and hopefully will get my money back. I am still waiting for mine, but am a bit more optimistic.

Don't despair if you haven't paid your non residents tax, contact Spanish Tax forms a uk firm and they will advise you on how to proceed, good luck.