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  • My capital gains liability is more than the 5% withheld of the purchase price. How is the rest collected if there is more tax to be paid?
Tax Law
Antonio Flores Vila
5th of September 2001
Q. I am UK resident. I am considering selling my holiday apartment in Spain and will not repurchase. If my Capital Gains Tax liability is more than the 5% of the sale price withheld by the purhaser how will the extra tax owing by me be collected ?

John
Appleby U.K.

    A. Not many non-residents worry about the excess to be paid if it surpasses the 5%. Or at least that is what all non-residents are doing, that is, not paying, as the Taxman has not means to collect debts outside Spanish jurisdiction. As a lawyer, I give my clients both options, paying or not paying, bearing in mind that currently the Hacienda Tributaria is not pursuing those debts if the tax debtor does not have other assets in Spain.

    In order to pay the owed portion, you would need to submit another tax form, together with a bankers draft, in the nearest ´Delegación de la Hacienda Tributaria´office.





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