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Thread: Stamp duty and witholding tax

  1. #1
    Junior Member
    Join Date
    Dec 2008
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    Default Stamp duty and witholding tax

    I have recently completed and sold a property in spain (an ocean view properties one), the lawyer miscalculated the stamp duty and witholding tax and we underpaid.
    He is now chasing the difference, can I ask who is responsible for these 2 taxes (purchasor or seller) and what are the consequences?
    Thank you

  2. #2
    Senior Member
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    Oct 2008
    Location
    Marbella
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    Dear Sir/Madame,

    If you are the vendor you only have to pay PlusvalĂ*a Tax and Capital Gains Tax at 18%, that’s all.

    You don’t have to pay anything else unless for some strange reason you committed yourself to pay further taxes and expenses (?).

    You don’t have to pay for Stamp Duty.
    You don’t have to pay for notary or land registry fees.
    You don’t have to pay for 7% Transfer Tax.

    If you are a non fiscal resident in Spain the purchaser withheld 3% of the purchase price which has been paid over to the Spanish Tax Office on account of your Capital Gains Tax liability. This is not a tax or withholding tax as you mistakenly post.

    If you are liable for less your appointed lawyer can request for a refund which normally takes a year’s time or so. Delay interests are paid by the Tax Office on said amounts.

  3. #3
    Junior Member
    Join Date
    Dec 2008
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    2

    Default

    Thank you
    The problem is my solicitor miscalculated the stamp duty and witholding tax so the purchaser did not deduct a sufficient amount before completion.

    Am I liable to pay this now after completion, I do not wish to make a claim for refund as it will be not worth the fees involved.
    Thanks



    Quote Originally Posted by Lawbird Lawyer View Post
    Dear Sir/Madame,

    If you are the vendor you only have to pay PlusvalĂ*a Tax and Capital Gains Tax at 18%, that’s all.

    You don’t have to pay anything else unless for some strange reason you committed yourself to pay further taxes and expenses (?).

    You don’t have to pay for Stamp Duty.
    You don’t have to pay for notary or land registry fees.
    You don’t have to pay for 7% Transfer Tax.

    If you are a non fiscal resident in Spain the purchaser withheld 3% of the purchase price which has been paid over to the Spanish Tax Office on account of your Capital Gains Tax liability. This is not a tax or withholding tax as you mistakenly post.

    If you are liable for less your appointed lawyer can request for a refund which normally takes a year’s time or so. Delay interests are paid by the Tax Office on said amounts.

  4. #4
    Senior Member
    Join Date
    Oct 2008
    Location
    Marbella
    Posts
    1,095

    Default

    Quote Originally Posted by storm View Post
    Thank you
    The problem is my solicitor miscalculated the stamp duty and witholding tax so the purchaser did not deduct a sufficient amount before completion.

    Am I liable to pay this now after completion, I do not wish to make a claim for refund as it will be not worth the fees involved.
    Thanks
    Dear Sir,

    Please re-read my reply carefully.

    You are the vendor. You do not have to pay Stamp Duty nor does your lawyer have to calculate any withholding tax. All this is done by the purchaser's lawyer not by your own lawyer as you are the vendor unless for some bizarre reason you agreed and committed yourself to pay the purchaser's taxes.

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