3% retention tax- House sale
May 4th 2018, 11:41 am
#1
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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
My quetion is -do you also have to have residencia- or is tax resident ( and up go date with all taxes/ returns) sufficient
May 4th 2018, 12:01 pm
#2
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Re: 3% retention tax- House sale
it is really the latter - you will need a certificate from Hacienda confirming you are tax resident and your tax payments are up to date. The Notario will need to reflect this in the Escritura
May 4th 2018, 1:20 pm
#3
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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.
If you don't make a profit the 3% retention can be reclaimed.
May 4th 2018, 1:35 pm
#4
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Re: 3% retention tax- House sale
Cheers folks
I understand it can be reclaimed but that takes around 12 months!!!!
I understand it can be reclaimed but that takes around 12 months!!!!
May 4th 2018, 3:31 pm
#6
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Re: 3% retention tax- House sale
Not in Valencia region!!
6-12 months
6-12 months
May 4th 2018, 3:31 pm
#7
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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?
How can you be one without the other?
May 4th 2018, 3:43 pm
#8
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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
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
Last edited by Dondurma; May 4th 2018 at 3:49 pm.
May 4th 2018, 4:39 pm
#9
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Re: 3% retention tax- House sale
Agreed. But what are the benefits of being tax resident but not having residencia?
May 4th 2018, 4:44 pm
#10
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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
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
May 4th 2018, 4:48 pm
#11
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Re: 3% retention tax- House sale
OK thanks for explaining and sharing. Just interested in case I was missing a trick.
May 4th 2018, 6:39 pm
#12
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Re: 3% retention tax- House sale
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.
May 4th 2018, 6:53 pm
#13
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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!!!!!
As regards what amounts to a yearly nil return- cheaper than non resident tax
As regards Brexit........Irish!!!!!
May 4th 2018, 7:32 pm
#14
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Re: 3% retention tax- House sale
Lucky old you!
