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How to claim your tax retention when selling a property?


There is an aspect of the sale/purchase process you should be aware of when either buying a property or selling it.

Even though it is an obligation from the buyer, the seller should be familiar with it as well.

When you sell your property in Spain as a non-resident, the Spanish Tax Authorities compel the buyer to retain 3% of the purchase price on their behalf. The buyer has one month from the signature of the Title Deed to make the payment to the Tax Authorities, this is done by filing Tax Form 211.

This retention is made as a payment on account of the Capital Gain Tax you are liable for as vendor.

At Landcross Lawyers, we have assisted many clients in claiming the aforementioned tax by preparing the necessary paperwork to ensure that the payment is done correctly once the selling transaction is completed.

Also, we can assist you in claiming any exceeded sum paid by calculating the due amount, deducting any possible expenses and preparing all the documents to be submitted to the Tax Authorities according to the legal criteria and deadlines. If the vendor is entitled to receive a refund, the claim must be submitted within three months since the sale has taken place. 

This claim is submitted completing a final tax return (Form 210) along with all the documents proving that the tax liability is less than the retention-. One of the most frequent questions asked by our clients is how long does it take to receive the refund (if applicable). This will depend on the local Tax Authority where the claim is submitted which is determined by the property’s location. However, we carry on a ceaseless follow-up process in order to keep the clients updated.

Please bear in mind that if the local Tax Authority’s office has to contact you due to lack of documentation or if there are mistakes in it, the process will be delayed, this is the reason why it is important to submit everything correctly at once.

If you would like to receive further information on this topic or make an enquiry, do not hesitate to contact us.

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