Property Sale 3% Reclaim in Spain

• Anyone selling a property in Spain, who is NOT a tax-resident, is subject to a mandatory 3% retention of the sales price by the buyer.
• In such cases, the buyer is obliged to pay 3% of the purchase price directly to the Spanish Tax Agency (AEAT) as an advance on the seller's potential tax liabilities - typically in regard to capital gains tax.
• However, if the capital gain from the sale is less than the 3% retained by the Spanish tax authorities, or if a capital loss is incurred, then the seller may claim any balance up to the full 3%.
• This service aims to assist such sellers in navigating through the complex procedures to accurately declare their gains or losses and recover the retained amount when applicable.

• To avail of this service, the client must be a non-tax resident in Spain who has sold a property there. 
• There are no explicit nationality or age requirements, but the client must be able to provide all necessary documentation related to the property transaction, including the notarial deed and any relevant invoices or receipts pertaining to expenses and improvements. 
• The client should also have a copy of the 3% retention payment made by the buyer to the AEAT. 
• Furthermore, the client must be able to demonstrate the capital gain or loss from the sale, which involves calculating the Transmission Price and Acquisition Price accurately and in compliance with Spanish tax laws.

The procedure begins with the non-resident seller obtaining a copy of the 3% retention payment (form 211) made by the buyer to the AEAT. 

Subsequently, the seller must calculate the capital gain or loss from the sale, considering the Transmission Price and Acquisition Price, and ensuring all relevant expenses and improvements are accounted for. 

If the calculated capital gain is less than the 3% retained, or if a capital loss is identified, the seller can initiate the process to reclaim the excess retention. This involves submitting form 210 for Non-Residents to the AEAT, along with all supporting documentation to validate the declared gain or loss. 

The seller must be prepared for potential verification by the Tax Agency and should retain all pertinent documents to substantiate the claim.

• Engaging with experienced English-speaking lawyers in Spain for this service ensures that non-resident sellers navigate through the Spanish tax system efficiently and compliantly. 
• The benefits include precise calculation of the capital gain or loss, ensuring all permissible expenses are accounted for, and maximising the potential refund from the AEAT. 
• Furthermore, the lawyers will manage all interactions with the Tax Agency, providing you with a stress-free experience and ensuring that all submissions and communications are conducted timely and accurately. 
• This expertise significantly enhances the likelihood of successfully reclaiming the retained amount and ensures that your interests are robustly represented throughout the process.

1. Initial Consultation: Understand your particular situation, gather preliminary data, and explain the process.
2. Document Review: Analyse all documents related to the property sale, including the notarial deed, and expenses related to both the acquisition and transmission of the property.
3. Calculation of Capital Gain/Loss: Accurately calculate the capital gain or loss from the sale, ensuring all allowable expenses and improvements are considered.
4. Form Preparation: Prepare and review the tax form 210 for Non-Residents, ensuring all data is accurate and complete.
5. Submission to AEAT: Submit the form 210 along with all supporting documentation to the AEAT, adhering to all submission deadlines.
6. Communication Management: Handle all communications with the AEAT, including any additional information requests or verification processes.
7. Refund Process: Upon approval from the AEAT, manage the refund process to ensure the reclaimed amount is correctly returned to you.
8. Post-Service Support: Provide support and advice post-refund, ensuring that you are informed of any further obligations or considerations.