Recently the obligation of withholding a 3% of the value of the sale of a property has been introduced, in the event the owner of the selling property is a nonresident.
Firstly, we shall define as non-resident a person who meets one of the following requirements, being their tax residency out of the Spanish territory; in the case of receiving a pension, working or recieving a salary of a Spanish entity; in the event of having interests and/or dividends on stocks, funds or bank accounts as well as benefits from Spanish companies; or if owning a property, being the last rented or not. In addition, you cannot be taxed under the Income Tax for Individuals or for the Corporation Tax.
In case of the sale of a property that is owned by a non-resident a 3% of the value of the sale must be withheld. In order to properly calculate this amount, the most recommendable thing to do is to go to the City Hall, where the last receipt of the IBI will be facilitated to whom may require it, as well as the date of purchase, and next to the date of sale, it is possible to estimate the value retain unequivocally. This value must match the one subsequently listed on the deed of sale.
The amount withheld shall be paid to the Treasury within a month after the sale, accompanied by the model 211, a copy of which shall be also delivered to the non-resident portion. The latter shall make the payment of the non-residents’ tax, discounting the previous statement of 3%, within three months upon the sale of the property, and holding in the model 210, provided that there was a capital gain. This benefit is defined as the difference between the acquisition value with accrued expenses and taxes on it and the value of the sale.
If not no gain is obtained, the non-resident is not obliged to pay the tax and may request a refund of the difference in retention in his favor by presenting the model 212. However, before applying for the same, the interested individual has to make sure that no debts to the Treasury exist, since the same will be deducted. That is why the importance of correct statement of the annual IRNR is highlighted.
There will be two exceptions to this rule, because if the seller of the property proved by a certificate from the tax authorities the fact that this person is being taxed on Individual Income Tax or Corporative Tax at the time of the transaction; or in the event that the property was part of a capital increase of a resident company, the transaction would be exempt from the requirement to hold this 3%.
If you are a non-resident and want to sell your property, or otherwise, a resident and you are interested in purchasing your property to a non-resident, put yourself into the hands of the expert lawyers and advisers in DAEMI ZABALZA & ASSOCIATES, who will take responsibility to guide you throughout the process so you do not have to worry about anything.