Have you sold property at a loss in Spain? You can now apply for a full tax refund!
Raymundo Larraín Nesbitt, November, 8. 2017
Lawyer Raymond Nesbitt goes on to explain how vendors (both resident and non-resident) can now benefit from a time-limited opportunity to claim back their tax on selling property at a loss in Spain.
By Raymundo Larraín Nesbitt
Lawyer and Director of Larraín Nesbitt Lawyers
8th of November 2017
Following a recent Constitutional Supreme Court ruling from 2017, if you have sold (or are planning to sell) property in Spain at a loss you can now benefit (for a limited time only) from a full tax refund (plus interests).
The new ruling argues that taxes need to respect the constitutional principle of economic capacity. Taxing someone when no profit was made (on selling) would therefore be unconstitutional and would qualify for a full tax refund.
On selling, a vendor needs to pay a tax known as ‘plusvalia’ tax. It is this tax that can be fully refunded.
Practical effects of this new ruling
- Vendors who sold property at a loss as from 2013 can now request a full refund of plusvalía tax plus legal interests on top.
- It is estimated over 550,000 vendors qualify for this refund since 2013.
- Refunds on average stand to be in excess of €3,000.
- Claims are time-limited. You cannot claim back your money after the statute of limitations kicks in.
How can we help you recover your money?
One of the core specialties of our law firm is litigation. We offer a no win no fee* on these cases.
We will examine your matter free of charge and report back to you if you have a strong case.
You only pay our legal fees, if we win your case. That simple.
What we need from you
- Copy of Title Deed (buying).
- Copy of Title Deed (selling).
- Copy of last IBI/SUMA invoice.
- Copy of plusvalia tax invoice.
Frequently Asked Questions
- Does this new ruling mean I no longer have to pay plusvalia tax on selling at a loss?
No. You will be expected to pay this tax to your town hall on selling a property whether you have made a profit or not. Once you have paid it can we then claim back the tax on your behalf plus interests.
- Hearsay has it that I only need to fill in a form before a town hall to get my money back. Why should I need to hire a lawyer?
This information is incorrect, hugely misleading and can make you lose ALL your money. There is nothing worse and more dangerous than a half-baked truth.
The first step for a law firm to recover your funds is to apply for a refund petition. Wording and arguing the petition properly, in a legal manner, is critical for reasons I explain further below. In 99% of cases town halls turn down this form or simply ignore the claim.
Once the claim is spurned by a town hall, the following step is to instigate a legal proceeding which hinges on said petition, hence its importance. If the petition was incorrectly worded, say by a layman, the case is lost beforehand, and you will NOT receive back your money, period. Litigation is necessary almost in every case to recover your money.
If you want your funds back, you simply need to hire a law firm such as ours to act on your behalf from start to finish; you cannot cut corners doing it yourself.
- Can I claim my money back without a lawyer?
You can try albeit most likely fail. You simply need to appoint a lawyer to litigate on your behalf.
There is a limited time frame to claw back your tax refund (which varies depending on your own personal circumstances). After your claim becomes time-barred, your case is precluded and you lose all your money.
Act now, you will not get a second chance! Contact us before it is too late.
Larraín Nesbitt Lawyers is a law firm specialized in litigation, conveyancing, taxation, and inheritance. We will be very pleased to discuss your matter with you. Please contact us for a free initial consultation. You can contact us by e-mail at firstname.lastname@example.org, by telephone on (+34) 951 894 675 or by completing our contact form.
Article also published at Spanish Property Insight: Have you sold property at a loss in Spain? You can now apply for a full tax refund!
*Court runner’s fees & property assessment report not inclusive.
Legal services Larraín Nesbitt Lawyers can offer you
Litigation related articles
- Is Litigation Against Spanish Developers Worthwhile? – 23rd May 2008
- 10 Reasons why your Case against a Developer may be thrown out of Court in Spain – 8th September 2012
- Supreme Court Rulings on Bank Guarantees – 8th April 2015
- Off-Plan Bank Guarantees and Supreme Court Rulings – Payback Time – 8th June 2016
- Spain’s Constitutional Court rules ‘Plusvalia’ tax is illegal if property is sold at a loss – 3rd March 2017
- Recap of Legal Actions in Spain against Banks & Others – 21st March 2017
- Selling property at a loss in Spain: ‘Plusvalía’ tax no longer payable – 18th May 2017
- Have you sold property at a loss in Spain? You can now apply for a tax refund – 8th November 2017
Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.
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