Hi everyone.My mother who is 86 years old has been living in Spain for 10 years now with a residents permit.However we have discovered that not only has she lost her residents card but that it has also expired(2 years ago).During her time here as a pensioner,she has paid her annual tax but has never completed a tax return and she now wants to sell her property and return to the U.K.
Would she still be able to renew her Residencia or would she have to apply for the new EU certificate of residency?And would the hacienda recognise this new certificate as proof of Capital Gains tax exemption?

Good question - I have discussed it with my Spanish wife and whilst we are not tax experts or solicitors we think this: The notary you use when you complete on the sale has to by law retain 3% of the sale price if the seller is a non resident. This is paid to government as a retention until any taxes due are calculated etc.

However given your mother has been living here but unfortunately forgot to renew her residencia it might be best to ask someone in authority (doctor, bank manager etc) to vouch for her so that she might be able to obtain the new certificate backdated to the card expiry date (if this is possible) then she can complete as a fully fledged resident!

Or, perhaps the notary might accept she has lived here as a resident by the utility bills etc. and take pity on her and let it go through as a residents sale.

Hope this helps - post again when you make some progress!

Sorry I missed a point - I do not think that any more cards are being issued - now it is only the new certificate.

Also cap gains tax is not taken on the completion day it is taken into account with the annual tax return (Declaracion de Renta) Under the circumstances I think it would be unfair to make your mother pay any CGT but anyway as she will be back in the UK and I assume closed her Spanish bank accounts I find it difficult to believe the Hacienda will be able to claim anything!

Thanks for the info,will keep you posted.

Sorry Chris I think you are out of date - the retention for non resident sellers was reduced to 3% when the CGT was reduced to 18% for non residents. Also my understanding of it was - it was never 5% of the gain but of the sales price

I heard 3% is the retention from the 18% but only on the profit made on the difference between the agreed escritura value and the selling price.
Went to Elche Police Station today and spoke to a very nice lady at the information desk about our problem.
She says that the tarjeta is definitely out and that my mother will have to apply for the new Certificate,(she gave us the application forms)which she says will be sufficient proof of residency for the exemption of CGT.
I think the idea of going to the bank or the doctor for some back up might also be useful.
This new method of application seems to be much easier than before.We go along to Elche with Tasa paid and forms filled in,along with her passport and new empadronamiento.Collect a number (go very early am.)and wait our turn.The certificate is issued on the same day.
If it all goes to plan it will be a first.Watch this space!

Well done Lucky8 sounds like you are getting it sorted out. Yes the CGT is calculated using the original escritura value and revised value at sales time. There are other factors which relate to the final tax bill as it is included with your overall tax return - worst case scenario is 18% but it can be less. In your mothers case it will be zero because she qualifies by her age for exemption and the fact she has lived there in excess of 3 years.

The 3% retention which is payable by a non resident seller is based on the total sales price and is processed via a Form 211 which the notary will demand to see on completion day. Hacienda will look at all outstanding tax issues for that seller and deduct if from the 3% Any surplus can be reclaimed via a Form 212. Again this will not apply to your mother being a (new!) resident.

Hopefully they will not regard her as a new resident and make her wait another three years to be exempt???What do you think?

Hopefully common sense and a bit of compassion will rule on the day. But additional ?vidence? from a person in authority will be useful backup ammunition (ie bank manager etc) Also I think you would be wise to have a good abogado or at least a translator (most notaries insist on this anyway) who is prepared to put the case to the notary. If the notary wont accept it you will have to be prepared to pay the non resident sellers 3% retention and then try and reclaim it.

We have a Spanish solicitor who speaks very good English,but she has told us that the new certificate is not accepted by the notary and that we should go to Orihuela to the Hacienda and plead our case.She reckons it will depend on who attends us.
So,who should we believe ? Our solicitor or the nice friendly lady at the police office in Elche ?