Torrevieja Forum

[rightsaidfred]

Hi all ,when selling a property in Spain and buying another here , is there still a 3% retention fee for Residents TIA

[gardner8]

The retention fee applies to non residents.

[Karen Jones]

I think you have to be a fiscal resident to be excluded from paying the three percent.

[freddo]

Karen is correct

[rightsaidfred]

I think you have to be a fiscal resident to be excluded from paying the three percent.

Thanks, by that do you mean I need to declare my tax return over here

[freddo]

Yes you do need to fill in a tax return

[Info]

Yes you need to be making your tax returns to Spanish Hacienda. It is why people who are resident but are not liable for income tax, due to their small earnings, are always advised to make a tax return even if it is a nil tax return. They are then registered on the system and can benefit from other allowances and credits. The Comm Valenciana is good as you will probably not be taxed on the sale of your home once you fulfil the tax criteria like over 65 or investing the proceeds in a new home within a set time limit.

Bee

[rightsaidfred]

Yes you need to be making your tax returns to Spanish Hacienda. It is why people who are resident but are not liable for income tax, due to their small earnings, are always advised to make a tax return even if it is a nil tax return. They are then registered on the system and can benefit from other allowances and credits. The Comm Valenciana is good as you will probably not be taxed on the sale of your home once you fulfil the tax criteria like over 65 or investing the proceeds in a new home within a set time limit.

Bee

Thanks all, probably didn’t explain , I have filled a tax return over here for the last few years,so maybe exempt from 3% then

[freddo]

It depends if you have filled in aNon Resident tax form or a Resident form

[rightsaidfred]

It depends if you have filled in aNon Resident tax form or a Resident form

I’m Resident Freddo, thought I had said

[rightsaidfred]

Hi all ,when selling a property in Spain and buying another here , is there still a 3% retention fee for Residents TIA

[freddo]

Apologies

[rightsaidfred]

Apologies

No need Freddo