Elly May

Hi Everyone,

Wondered if anyone can help?

When we sold our apartment & completed in May the usual 3% retention was made. We lodged the relevant paperwork in order to apply for a refund and up until now have heard nothing.

We purchased the property in joint names and my husband has now received a registered letter informing him of outstanding non residents tax owing, I have received nothing as of yet.

So my two queries are;

1. As we purchased in joint names am I right in presuming that there will be another tax demand in my name due?

2. Even though the tax office has 3% of our money (we sold at a loss, so no capital gains due) will we still have to pay this demand first before they issue a refund or will they take it out of the money they already have which is more than enough as what we owe in non residents tax is not a huge amount.

Any info would be greatly appreciated.

Many thanks.

Elly May

Rosemary

I have no idea of the answer to your questions but thought it worth saying that the tax demand is probably the whole amount because even though it is in joint names I have found that often they send things to the first name on the paperwork which tends to be the male.

We used to laugh at our bank because they would send the mortgage payment information out in his name one month and mine the next, equality.

Rosemary

snikpoh

Firstly, no animosity intended, but ...


Why did you not pay any non-residents tax? Was it simply a matter of not knowing that you had to pay it or was it intentionally done?

I ask because I am sure there are others who;

• may not know that it has to be paid or
• may not realise that hacienda will catch up with them at some point

Thanks

missile

Many non residents do not pay the property tax. You have to pay tax due before you get a refund of the retention.

snikpoh

Isn't that why they retain it - to get something back?

missile

Exactly right......

I understand the retention was introduced as so many Brits were doing a runner without paying their dues. It used to equate to the tax most were due (mas o menos) and saved a lot of paperwork.

Elly May

In answer to your questions:

We went to the tax office in Orihuela on a number of occasions during the time that we owned our apartment in order to pay our non residents tax, with stickers and paperwork, etc but were sent away time and time again and in the end we just gave up! I know we shouldn''t have and it is no way an excuse but that is how it was. We didn't have the money at the time to pay out for a Gestor so now it's caught up with us as we knew it would!

We know we have to pay, just don't want to end up paying twice as the tax office already have quite a considerable amount from us by way of the retention.

Elly May

Thanks Rosemary, we do wonder if this is the case as like you say a lot of correspondence was always addressed to my husband, even when it concerned us both. I have checked the form that was submitted to the tax office in order to claim the refund and the main name on it is my husband with my name appearing further down showing that I owned a 50% share.

snikpoh

Thank you for the response.

I've heard that a lot - people want to pay but are obstructed by (stupid) officials. For example, pensioners who are categorically told that they don't have to do a tax declaration in Spain. Now, of course, they're stuffed with the recent health care changes etc.

Cazzy1

We have paid our non residents tax every year. The solicitor who we brought our house through sends us a bill every year. He charges about 100 euro for doing it. I know you can do it without a solicitor but we thought this was the easiest way.

If you owe any tax at all after the sale of a property it is very difficult to get any of the 3% back!!

spainrico

Orihuela does have a strange attitude towards foreigners, even resident ones - you almost have to beg them to take your money! My Spanish wife explains every year that I want to pay tax (well I don't but legally have to) and they look at me as if I am simple (and perhaps I am)

Elly May

Thank you all for your helpful replies