Resident or fiscal resident?

Hi,

After a conversation with ex-colleague the other day, I have a question about residency in Spain. I have been a resident for 15 years and am looking to sell my flat in the next year or two. He tells me that he had a nightmare scenario when he went to sell his house a year ago as, although he is resident, he hadn´t paid tax/been working for previous 3 years, and was told he was not a fiscal resident because of this. As he was not a fiscal resident (although he had paid tax for most of the 10  years before he sold his house) they wanted to charge him 10% tax on completion of the sale.

Does anyone know about this, and how does it work?

Thanks, Amatista

The retention is only 3%, certainly not 10%, to cover your 18% liability to capital gains tax , less deductions. It's the buyers responsibility  ( or his solicitor ) to retain the 3% & pay it in to the hacienda in your name. If you are not deperate to sell make a tax declaration, even if you have no income , then you will have the tax cert. for when you sell & their will be no deductions.

Thanks Gus - so whether I am working (and paying tax) or not, but I am still a resident, the retencion should be no more than 3% of sale price to make up for 18% capital gains?

Jane

Yes, that's it.

Thanks Gus

This message was last edited by Roberto on 01/03/2010.

Is there anyway to submit a tax return for fiscal purposes (i do not have income in Spain) to reduce the tax due on my proerty when I sell? I do not want to pay 100 euros for nothing online or at an office?