This was a facebook question we advised on this week:
Q. Please can anyone advise – I am thinking of selling my house in Spain what is the tax implications I am a non resident I was left it by my father any information would be helpful. Regards
A. Assuming that the probate in Spain is done and completed and that is not an issue; I will detail all the costs involved in a sale:-
-plusvalia (local tax), the 3% withheld for any taxes due in Spain ( particularly any CGT but other taxes as well outstanding like non residents tax), Suma for the year of sale, up to date water/elec/gas etc, community fees up to date, EPC (Energy certificate), certificate of habitation and solicitor´s fees.
You need a solicitor unless you know exactly what to do and it is complicated. For example,if you turn up at the Notary without the 3% sorted, you can´t complete and might end up paying for a power of attorney for the other side and have delays. Also, claiming back the 3% does not happen automatically, forms need to be done and you need to prove things.
Residents do not have the 3% retention but obviously they can´t sell owing taxes. Regarding the new law in August 2015, this is to do with inheritance and Wills, not selling taxes, “A major step to facilitate cross-border successions was the adoption on 4 July 2012 of European Union rules which will make it easier for citizens to handle the legal side of an international succession. These rules are applicable to the succession of persons who die on or after 17 August 2015. Denmark, Ireland and the United Kingdom do not participate in the Regulation.” So it is not applicable to the sale process. Also we would recommend a currency exchange company for sending funds back to UK not a Bank.