If you sold property in Spain recently you may be entitled to a tax refund.

In October 2008 the European Commission upheld a previous ruling against the Spanish Government for discriminating against non residents who were taxed at 35% on Capital Gains when nationals and those non Spanish who were fiscally resident at the time of sale, who were in the main, subject to tax rate of 15%.

Following this ruling in Jan 2007, Spain introduced a flat rate of tax at 18% for all Capital Gains.  It is likely that other forms of tax discrimination will be abolished, like income tax on rentals where currently non residents cannot claim expenses.

This latest CGT ruling now makes it very difficult  for the Spanish Tax authorities to reject applications for a tax refund. However , those who believe they may have overpaid must submit their claim as soon as possible, because under Spanish law claims can only be filed within 4 years, although this period may be extended if there has been some form of communication with the Tax offce over the sale.  

To qualify to sumbit a claim you must meet the following criteria:

The property was owned personally and was sold between August 2004 and 31 December 2006

You were not fiscally resident in Spain at the time of sale

Although 5% of the purchase price was retained, you submitted your Capital Gains Tax return where tax was charged at 35%.

Loom Financial Services already represent a number of clients who sold their property during this period using their conveyance service and have already submitted claims to the authorities on their behalf of these clients.  Now they have extended this service to the general public.

Applicants can chose between to charging structures:

A) No win - No fee.  Under this method the applicants appoint Loom Financial Services S.L. to represent them through and will receive the tax refund,  less professional fees of 30%. If the claim is unsuccessful, no fees are payable.

B) Flat Fee on Appontment.    Under this method the applicants appoint Loom Financial Services S.L. to represent them and pay 250 euros at outset. If the claim succeeds the professional fee with be limited to 500 Euros or 15% of the amount refunded, which ever is the greater.  If the claim is unsuccessful no further fees are payable.  Fees are subject

Professional fees are subject to Spanish VAT (currently 16%).

If you wish to find out if you may be eligible for a tax refund and to find out how much you may get back, without any obligation, please complete the form.