If you were Non-Spanish resident who sold a property in Spain between January 1997 and December 2006, chances are that you paid 35% Capital Gains Tax.
This 35% was paid directly to the Hacienda after the sale of a property and applied to the surplus / profit that was declared at the time of sale - the Capital Gains Tax applied to Spanish Residents during this period was just 15%.
The EU since ruled that the disparity between these 2 taxation rates was essentially discrimination and forced the practise to come to an end instead ensuring that there was just one rate of taxation, regardless of residential status, and that now stands at 15% for everybody.
Spanish law states that there is a legal right to reclaim any taxes that you have overpaid and a number of cases have been presented to the Hacienda with a successful outcome.
However, the window to reclaim any overpaid taxes is due to close in November 2010, so the time to act is now !
So how do you go about making your claim ?
First of all you should check that you are eligible to claim, by meeting the criteria below :
You sold a property in Spain between 1st Jan 1997 and 31st Dec 2006.
You were NOT a Fiscal resident in Spain at the time of sale.
The sale was completed as a Individual and NOT as a company.
and once you are happy that you meet these conditions, check that you have the following documents in your possession or get them in order as soon as you can :
A completed Modelo 210, 211 or 212 Spanish Tax Form.
A copy of both your Purchase AND Sale deed ( Escriura de Compraventa )
You should then contact a Spanish Lawyer who is experienced in Taxation issues this is a complicated and specialist process.
You should be prepared for the process to take around 18 months, however a 6% annual interest can be added to the sum of your claim from the date that your application was formally submitted.