3% Non-Residents Sale Tax - Could I be entitled to thousands of euros?

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3% Non-Residents Sale Tax - Could I be entitled to thousands of euros?

If you've made a loss on the sale of your property, you might able to claim this tax back. 

When selling your house in Spain as a non-resident, the buyer will retain 3% to pay to the Tax Office. In some cases you might be entitled to claim this money back, especially if you've made a loss on the sale.

This is an administrative process. The Tax authority checks whether there are any outstanding taxes payable by the non-resident seller (such as the annual non-resident tax) before returning any funds.

To put it in perspective we can use the following example:

John Smith purchased a holiday home in 2007 for 120.000€ and in 2019 he decides to put it up for sale.

John accepts an offer of 100.000€

When it comes to the transaction on the day of the signing, the buyer retains 3000€ from the price, leaving a total of 97.000€ for John. The reason the buyer does this is so that he can be sure the 3% Non-Residents sales tax, which the seller is liable to pay, is truly delivered to the Spanish Tax Office and thus ensures the Tax Office doesn't cause the buyer any issues later down the line (if the seller doesn't pay the 3% and then leaves Spain, the buyer will be made liable)

After the sale is done, the buyer (normally through his lawyer or estate agent) will pay the 3000€

Since John sold the property for less than what he bought it for in 2007, he can now claim the 3000€ back from the Spanish Tax Agency!

A lot of Non-Residents aren't aware that they could be entitled to claiming thousands of euros back from the tax authorities.

It should be noted that to officially reclaim money from the tax authorities in Spain it is always recommended to use a fully qualified fiscal accountant. A professional fiscal expert will ensure the tax office doesn't try to claim other money in the process and will also help avoid any fines or sanctions.

At G. Bryan Expat Solutions we only work with fully certified fiscal accountants and experts. Why not consult your case with us today? Can you really afford to miss out on thousands of euros?

-Greg P. A. Bryan  

 +34 689408412
gregpa.bryan@gmail.com


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