3% retention tax- House sale
To avoid having to forego the 3% retention tax when selling your property I believe the seller must be tax resident.
My quetion is -do you also have to have residencia- or is tax resident ( and up go date with all taxes/ returns) sufficient |
Re: 3% retention tax- House sale
Originally Posted by Dondurma
(Post 12494320)
To avoid having to forego the 3% retention tax when selling your property I believe the seller must be tax resident.
My quetion is -do you also have to have residencia- or is tax resident ( and up go date with all taxes/ returns) sufficient |
Re: 3% retention tax- House sale
Seems like a lot of hassle.
If you don't make a profit the 3% retention can be reclaimed. |
Re: 3% retention tax- House sale
Cheers folks
I understand it can be reclaimed but that takes around 12 months!!!! |
Re: 3% retention tax- House sale
Originally Posted by Dondurma
(Post 12494410)
Cheers folks
I understand it can be reclaimed but that takes around 12 months!!!! |
Re: 3% retention tax- House sale
Not in Valencia region!!
6-12 months |
Re: 3% retention tax- House sale
'My quetion is -do you also have to have residencia- or is tax resident ( and up godate with all taxes/ returns) sufficient'
How can you be one without the other? |
Re: 3% retention tax- House sale
Easily
If your'e in Spain in excess of 183 days in a year you are tax resident. Residencia however is required after 90 CONSECUTIVE days ( leave on day 89 and for residencia the clock restarts, but for tax residency its cumulative) Hence you can be tax resident but not require residencia |
Re: 3% retention tax- House sale
Agreed. But what are the benefits of being tax resident but not having residencia?
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Re: 3% retention tax- House sale
For me being tax resident is financially to my advantage As my pension is protected Crown income I do not get taxed in Spain- whereas being tax resident I do not have to pay non resident owners tax The residencia aspect is of little value to me |
Re: 3% retention tax- House sale
OK thanks for explaining and sharing. Just interested in case I was missing a trick.
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Re: 3% retention tax- House sale
Originally Posted by Dondurma
(Post 12494523)
For me being tax resident is financially to my advantage As my pension is protected Crown income I do not get taxed in Spain- whereas being tax resident I do not have to pay non resident owners tax The residencia aspect is of little value to me Are you saying that you never spend more than 90 days in Spain. If you do, you are legally obliged to register. After Brexit you may find that living in Spain without the necessary paperwork could cause problems. |
Re: 3% retention tax- House sale
90 CONSECUTIVE days, no I dont
As regards what amounts to a yearly nil return- cheaper than non resident tax As regards Brexit........Irish!!!!! |
Re: 3% retention tax- House sale
Lucky old you! |
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