My elderly parents sold Spanish property and need help

m14x74

Hi all, figured this was the best section to post in

I really need some advice on behalf of my elderly parents, both are really ill, my dad is on an oxygen tank and cannot get around and my mum is registered disabled and they have asked me to help but i don't know where to start

They had an apartment in Spain which they sold about 15 months ago and as part of the whole way the law works there the Spanish government hold onto 5% of the sale fee for 12 months just in case you have left behind any debt etc... (which of course my parents havn't)

The problem arises now that they want their 5% back off the Spanish government, i have done some googling but can't find any solicitors over here that deal with this kind of property issue

Has anyone ever come across this problem and how did they over come it ?

Thanks in advance :beer:

silvercar

Don't know.

Maybe try a forum that specialises in overseas?

http://www.laymyhat.com/forum/viewforum.php?f=23

m14x74

silvercar wrote: »

Don't know.

Maybe try a forum that specialises in overseas?

Ok I will, thanks for the link... i thought i would try here first as this is a very busy and helpful site, cheers

G_M

m14x74 wrote: »

Ok I will, thanks for the link... i thought i would try here first as this is a very busy and helpful site, cheers

True. But on the subject of UK property.....

Googling "spanish english property solicitors" brought up many links, some in Spain some in England.

I cannot recommend, so you'd need to research a few of them before choosing.

"buying property in spain" also brought up links, including

https://www.gov.uk/how-to-buy-property-in-spain
(UK gov advice)

Your local library will doubtless also have books on the topic.

m14x74

Thanks G_M for the advice offered, i will give that a try

missbiggles1

Are you sure this is refundable - all the information I can see speaks of it as a tax.

ETA

Perhaps not - this seems to be relevant,

"Non-residents are liable for a "cautionary" retention tax of 5% when they come to sell their Spanish property. For example, when a non-resident sells their Spanish property their buyers pay 5% of the sales price (retention tax) directly to the Spanish tax authorities and will only receive 95% of the sales price. This retention tax is kept "on account" by the Spanish tax authorities until the non-residents capital gains tax is calculated. Once the capital gain is determined (i.e. the profit minus any inflationary considerations for the period that the property was owned) and the appropriate CGT is calculated, the Spanish tax authorities will deduct the retention tax from the CGT that is liable. If the CGT liable on the sale of the Spanish property is more than the 5% retention tax that is held "on account" then the non-resident has to pay the difference. If, however the CGT liable on the sale of the Spanish property is less than the 5% retention tax that is held "on account" then the non-resident is reimbursed the difference by the Spanish tax authorities."

I don't see why you'd need a solicitor to contact the Spanish tax authorities.

m14x74

missbiggles1 wrote: »

Are you sure this is refundable - all the information I can see speaks of it as a tax.

Thanks for the reply, the information they were given when selling is that the 5% is held for 12 months by the Spanish government to pay for any debts etc.. left behind by foreign nationals leaving the country

They were advised by their Spanish solicitor that the 5% is refunded after the 12 months expires

Annisele

m14x74 wrote: »

They were advised by their Spanish solicitor that the 5% is refunded after the 12 months expires

In that case, can't they go back to their Spanish solicitor and ask about it? It must be a relatively common query for them.

missbiggles1

Annisele wrote: »

In that case, can't they go back to their Spanish solicitor and ask about it? It must be a relatively common query for them.

Or the notary who dealt with the sale (assuming they don't actually owe any CGT).

m14x74

Annisele wrote: »

In that case, can't they go back to their Spanish solicitor and ask about it? It must be a relatively common query for them.

Yes... this... looks like the only course of action tbh, i will have to do it as they simply can't cope

Will get myself across to theirs and get on the phone to Spain

Thanks for the reply

antenna

The possible debt could be the capital gain made on the increased value of the property from the purchase price to the selling price.
If they were non-residents then the capital gain they have to pay could be around 20% of the profit made on the sale less a inflation co-efficient,so a 5% retention is made awaiting this possible tax charge.