How much can I reclaim?

The amount you can reclaim firstly depends on the difference between the price you purchased your property for and the price you sold it for.

Many foreigners who sold property in Spain did not pay Capital Gains Tax, but 5% of the sale price of the property will have been retained as part of the conveyancing process.  This will have been paid to the Spanish taxman by the buyer.

Most typically, those who went on to buy another property will have paid the full capital gains tax for non-residents which was 35% of the price difference between purchase and sale.

The European Court has ruled that foreigners should only have been liable for the same Capital Gains Tax rate as Spanish residents.  The amount that should have been paid was 15% of the difference between the purchase and sale price.

Example of a Spanish Tax Reclaim Calculation

If you purchased your property for €200,000 and sold it for €250,000, the difference between purchase and sale price would be €50,000. The amount you should have paid, according to European law is €7,500. If you just paid the 5% retention of the sale price, then you will have paid €12,500 and you can reclaim €5,000. If you paid Capital Gains Tax when you sold your Spanish property, you will have paid 35% of €50,000 which is €17,500 and you can reclaim €10,000.

Spanish Tax Reclaim Calculator