3% to goverment when selling property

[durx]

The other day i was given some odd info from a spanish estate agent, i was told that 3% is taken by the goverment/council upon sale.

i was advised that this can be claimed back if you complain.

is this correct?

phil

[jaritex]

Re: 3% to goverment when selling property

Why don't you believe the information of an estate agent? Not every estate agent is bad. This is very true in facr some months ago this was still 5% but thet have reduced it because not many people go through the procedure of claiming some of the money back.
If you don't believe it I advice you inform yourself with your lawyer!

[durx]

I didnt say i didnt disbelieve it whole heartedly, but was merely asking for clarification on it, and that;

1, what the 3% was held back for
2, can it be claimed back easily

But by default your statement

"Not every estate agent is bad"

leans towards that you believe that some are bad, so clarification is needed from a 3rd source.

I will be taking it up with my solicitor, but initial advice is always taken onboard.

Are you by chance an estate agent, or affiliated with 1?

[simmy]

I think you are referring to the payment to the government made on sale of property set against a possible capital gain. As the law seems to change at anytime it is best to get an update from your lawyer. But if you are a resident and / or put the money back into property you should be able to claim it back or not pay it in the first place.

[durx]

i am putting the money back into another property, so i hope to claim it back.

phil

[jaritex]

The 3%

Yes I am but I can't say this on a forum. If you want to find out more email me on info@euroresortinvest.eu
Kind regards,
Christine

[tornado]

So sorry to jump in here as its not my thread - so apologies for this - what I dont understand is, if you sell at a loss, do the Government still charge you the % i.e. I have heard 35% but I assume this is only if you make a profit!?? I have heard of the retention of a % when you sell - I assume this is if there are any bills outstanding on the property of which you claim back at a later date?

Again, I'm sorry if I have totally gone off drift here as it wasnt my question in the first place

Tornado

[durx]

The 35% was the capital gains tax for those not holding a residencia card, as opposed to those who did being charged 15%.
since the beginning of the year, the blanket charge for both groups is now 18%.

as far as i am aware (please correct if i am wrong), the now 18% is calculated whist taking into account other factors such as length of time as the owner and the other fees charged upon purchase, but i maybe wrong on this, as i have heard many variants on CG tax.

As to what happens to the 3% if sold at a loss, i have no idea, but if it is to cover outstanding debts, then i presume it will be still payable.

which brings to mind, are the solicitors not empowered to search out outstanding debts on any property before the notary date?

phil

[Alyson]

I think you are referring to the payment to the government made on sale of property set against a possible capital gain. As the law seems to change at anytime it is best to get an update from your lawyer. But if you are a resident and / or put the money back into property you should be able to claim it back or not pay it in the first place.

Actually, Capital Gains Tax in Spain has just been made 18% for everyone. Previously, it was 15% for ex-pats and other immigrants and 25% for the indigenous Spanish people. Quite rightly, they were not happy about this!
Interestingly enough, Alistair Darling has just announced that he will be changing Capital Gains Tax in the UK to 18%. That's from 40% but bad news for anyone who is making a gain on a property they have owned for yonks cos he is doing away with the amount you could right off every year. Reading newspapers both in Spain and the UK has given me this information!