My clients,
who are residents, purchased a property in Andalucía. When drawing up the purchase contract
(escritura de compraventa) in a notary office. The clerk was at first, not willing to
inscribe in the document that they were residents in Spain. As far as he was concerned, he had no proof
of resident status. He made the point
that the A4 size green document which has replaced the previous resident card,
(and even though accompanied by passports) was not proof enough. He did have a point. If they had been selling a property they
would have been considered as nonresidents.
This would result in the couple having to abide by the rule that, a
‘nonresident tax’ would be applied.
Consequently;
three percent of the total sale price would be legally withheld by the
purchaser, purchasers lawyer or the banks gestor if, the purchaser had applied
for a mortgage. The funds would then be
forwarded, with the relevant forms to the tax authority. The gestor would also
withhold a fee for the processing of this payment. You would then have a time limited period to
reclaim the amount retained, minus any taxes you may owe. IF you have made your
annual tax declaration on a yearly basis, you would apply for the ‘Certificado
de Residente Fiscal’ (tax resident) with this document, the three percent
retention will not be withheld.
Consider
that the rules are changing daily to safeguard against anyone selling a
property and then leaving Spain owing taxes. If you are a nonresident vendor,
take note that the ‘Plus Valia taxes’ due on the sale, will also be retained by
the purchasers representative.
The resident
document states, “La persona que a
continuación se indica, ha solicitado y obtenido su inscripción en el Regisgtro
Central de Extranjeros de la Dirección de la Policía y de la Guardia Civil,
como residente comunitario en España” (The person indicated below, has sought and obtained
registration in the Central Registry of Foreigners, of the address of the
Police and of the Civil Guard; as a community resident in Spain) Translate and take this statement as you will, but there is
no doubt, that there is conflicting and controversial recognition of resident
status at present.
For this reason it is important to
take further action to authenticate your resident status.
