Time is running out for hundreds of Irish citizens who sold holiday homes or investment properties in Spain before 2007 to claim refunds that could be worth thousands of euro.
Last October the European Court of Justice ruled that Spanish authorities acted illegally by charging different rates of capital gains tax for non- residents selling property.
Spain had corrected the anomaly by introducing a flat rate of 18 per cent on January 1,2007, but thousands of EU citizens had already paid 35 per cent capital gains tax on properties sold before that date – 20 per cent more than their Spanish counterparts.
Irish-based Spanish solicitor Alvaro Blasco says preparing documents to lodge the claim only takes about two weeks but advises those looking for a refund to start the process before the end of October.
“How long will this procedure take? It could take between a few months and up to two years, depending on different factors,” says Blasco.
“The good news is that every single seller of a property in Spain before December 31, 2006, is entitled to a refund.”
In order to qualify for a refund for a refund sellers have to meet the following criteria:
– The property must have been sold before December 31, 2006;
– The seller was not a resident in Spain when he sold the property;
– The property was sold as an individual and not as a company;
– There is evidence that the seller paid due taxes in Spain;
– Have a Model 212 form (a Spanish tax office form that shows the price of the property) or a Model 211 form;
– Have a photocopy of the sale or purchase deed (not needed if there’s a Model 212 form).
Blasco, who operates a law practice in Co Kildare, is currently representing a number of Irish clients who are claiming a refund.
He can be contacted on 01-6293886 or through his website at www.blascosolicitors.ie.