Success story
She sold her flat in Alicante from London and recovered the 3% withholding
A property owner living in the UK sold her home in Spain and thought the 3% withheld by the buyer was lost.
€11,400of the 3% withholding refunded by the Spanish Tax Agency
Situation
A London resident for eight years, she sold the apartment she had kept in Alicante. At the notary's office the buyer withheld 3% of the price, as the law requires for non-residents, and nobody explained to her what to do next. She was also worried about a penalty for never having declared the property.
What was done
The tax adviser reconstructed the acquisition value using the purchase deed, the taxes paid at the time and the documented renovation work, calculated the real gain and filed form 210 (modelo 210) within the four-month deadline. As the tax due was lower than the amount withheld, the adviser claimed a refund of the difference and regularised the previous years by declaring the imputed income, which was minimal.
Outcome
The Spanish Tax Agency (Agencia Tributaria) refunded €11,400 of the amount withheld seven months after form 210 was filed. Regularising the previous years cost less than €300 and avoided any penalty.
