Sold my property

This is for people who have actually sold and made a profit, Not what Tony from done the pub says .  I bought a property for 120k then plus tax's  I have now sold it for 170k , I have had a pool built and other stuff probably spent 30k no receipts. I am a non resident, how much is the tax man going to want from me . I know he will hold the 3% back of the sale price . How much else will he take. 

New world...you are chasing rainbows try to find someone that has bought in Spain and made a profit..but to give you some Idea of what a straight sale with no profit costs ...I bought on Camposol in 2007 for €200,000 including purchase fees.. l finally sold it last week for €125,000 ..the fees for the sale come to in at around €15,000 including the 3 % tax withheld so I have lost in euros 90,000...if you think in sterling and what the £/€ rate was  back in 2007 as apposed to now I am only loosing £23,000 Which is not to bad of a loss after 15 years of using the villa... good luck with your sale.

Windtalker , thanks for the information, The 15k seems a lot to take off  I get the 3% held back money . My solicitor is charging me 1000 euro plus IVA I have used him for 3 properties before this one . I got feeling the tax man will say I paid  120k sold for 170k  50k profit but that's not the case . It's was  120k plus tax's etc call that 15k the work I have done it 30k . Agents fees to sell 7000 plus Iva , and solicitors fees and taxes when selling. Anyway we will see , the sale going through now , this will be the last time I buy in Spain. In the middle of buy a holiday home in the Lake District. Less hassle than owning in Spain . Good luck for the future. 

Maybe the property was bought in 1960.

Maybe the property was bought in 1960.  .......which property ?

Assuming the full purchase and sale prices were declared....

The buyer will retain 3% of the €170,000 sale price, i.e. €5,100

The difference (capital gain) between the purchase price (€120,000) and the sale price (€170,000) is €50,000, but as you know, you can deduct certain expenses to reduce your CGT liability.

Transition tax on the purchase (most likely 8%, but depends when you bought it), plus notary fees, land registry fees, and your legal fees - I wouldn't expect this to have come to more than 10% in total, but you say €15,000, so you can deduct that. Then you can deduct the selling agent's fees & lawyer's fees, which come to €9,680 (assuming IVA at 21%). That brings your taxable base down to €25,320. Unfortunately, without IVA receipts for the work you did on the property, you cannot deduct that, sorry. You will be liable for Plus Valia* as well (payable to your town hall, but as a non-resident it's possible the buyer will want to retain that as well). I'm not sure if this is a deductable for CGT or not to be honest. I think it is, but your lawyer or fiscal rep should be able to confirm this. I'll leave it out of the following calculation though, in case it's not deductable - and because I don't know how much it will be!

So, based on a €25,320 taxable gain, your CGT bill @19% would be €4,810.80. (Be aware that if you do not complete the sale until after December 31st you will most likely be charged at 24% as a non-EU citizen). So you would most likely end up being owed a small amount of the retention back - to be honest, your lawyer / fiscal rep (whoever would usually submit your 210 declaration on your behalf) will probably charge you more than the amount owed (unless it's already included in your lawyer's fee), so it may not be worth claiming it.

* there are various online calculators for plus valia. You can try this one https://www.foro-ciudad.com/plusvalia-municipal.php, or just ask your lawyer (he's charging you enough for doing virtually nothing!) to find out the exact amount from the town hall.

Hope this helps, but I would urge you to confirm this with whoever is handling your fiscal affairs. I'm not Tony down the pub, but I am responsible for introducing him to forum members, so who knows, maybe some of his BS has affected my reasoning a bit over the years?

Good luck with the sale, and with your new place in the beautiful Lake District.

Windtalker, I am curious to know where your "sales" fees of €15,000 come from ? Even allowing for the 3% retention (€3,750 on your sale price) that leaves €11,250. Just how much comission did the estate agent take? (5% is the absolute maximum anyone should pay in my opinion). How much are people paying lawyers to handle their sales? (A couple of hundred, in my opinion, is sufficient for what they actually do)

Roberto ..I had to pay for a architect to inspect my swimming pool and a extension to the property that Masa the builders did not have planning permission for ...I had to get plan's drawn up and so forth .

Thanks Roberto  I am hoping to complete on or before the 16 Dec 2020 . The sale price also includes most of the furniture which cost a lot of money, I am selling to a Spanish resident , which is good really as not many xpats viewing properties on the moment on my resort, it's a cash purchase as well. So fingers crossed just want out of spain now . Has a good 15 years met lots people, and a few Tony's from down the pub . But they are everywhere, and probably in the Lake District as well . 

It's probably too late now, but you may have been able to make a private contract for the furniture at a seperate valuation (by mutual agreement with the buyer), and deduct that from the declared sale price of the property thereby reducing your CGT liability further (and the buyer's transition tax for that matter). If you can get the taxable base down enough (and subsequently the amount of CGT due), it may be worth reclaiming the difference between the retention and what you actually owe. You would have to compare what you are due back with any charges for submitting your reclaim (using form 210) of course, and make that decision. I wouldn't really expect to pay a gestor / asesoria more than a couple of hundred for doing it on your behalf, and you should be aware that you could be waiting many months before you get your refund.

Ah, Tony! I know we've all met his type and if we're honest, it's characters like him that add to the colourful mosaic of life in Spain and we'd miss him if he wasn't propping up the bar on his favourite stool, spouting his nonsense! No doubt the Lake District will have similar personalities, but as for the Real Tony, as far as I know he only pops back ocassionally to Blighty to check on his council flat in Hackney, often returning with yet another clapped out Trannie van with a week left on its tax & MoT. Last I heard, he was actually now living in a caravan in Portugal.

Thanks for the explanation, Windtalker. Sorry you lost out, but good that you are philosophical about it. Since the crash in 2008, I've struggled to see how anyone still thinks Spanish property is an investment. Luckily for those wanting to sell, though, there will always be more people chasing the dream!

@Windtalker..."l finally sold it (on Camposol) last week for €125,000"

Funnily enough my wife and I were driving around Camposol this afternoon....on a long zigzag route from Extremadura  to Alicante for a week. We sidetracked on the road from Calasparra and Mazarron to have a squiz....and Camposol looked fine....a bit heavy on the Spanish balustrade & wrought iron vernacular....but otherwise a good place to corral Brits away from their Iberian counterparts. We drove past one place marked "Sold"... I wonder if it was yours, lol. Anyway, good luck!