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Thread: unpaid spanish CGT

  1. #1
    libby
    Guest

    Default unpaid spanish CGT

    Hi,I sold a spanish property last aug and my solicitor paid me approx 14,000 euros profit after fees etc and a 3% tax as i was a spanish resident for 9 months 6 years ago.
    today i get an email stating i owe almost 2000 euros CGT to be paid direct to solicitor within 48 hour deadline,no warnings or reminders! i dont have this sum of money so what would happen if i simply ignore it? dont they just use the 3% witheld? i now live in the uk and dont want my credit rating effected but this is alot of money to find!

  2. #2
    Senior Member
    Join Date
    Oct 2008
    Location
    Marbella
    Posts
    1,095

    Default

    Dear Madam,

    It is doubtful anything would happen.

    Yes the 3% is not a tax, it's a retention practised on account of your CGT liability on selling property.

    You may end up having to pay more than the 3% withheld or else you may be entitled to a partial or even a full tax rebate depending upon the profit made.

    If you've only made €14,000 in profit you ought to be taxed €2,520 or even less for CGT.

    Yours faithfully,
    Raymundo LarraĆ*n Nesbitt
    Last edited by Lawbird Lawyer; 06-29-2010 at 09:47 AM.

  3. #3
    Unregistered
    Guest

    Default unpaid cgtax

    thanks for your reply,it would appear i,ve got my facts wrong!
    as i'm apparently registered as a spanish resident the 3% tax was not witheld on completion and all the monies on the profit was sent to me via the solicitor.He did state he was holding back the capital gains tax but this was not the case.
    I still dont have any where near the sum of money owed and for now have chosen to ignore it.I haven't heard from the solicitor since.What can happen to me if i dont pay??
    #regards

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

    Default

    That you may be pursued for it if you're resident in Spain.

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