Blog

Capital gain tax in Spain arising from the sale of a property by a non resident

Capital gain tax in SpainIn the event that you are non resident in Spain and you are going to proceed with the sale of your property, you should take into account that, in the event that there is a gain, this income is taxable at a rate of 21%.

The capital gain amount is calculated on the difference between the sale value, which is the sale price less costs and taxes paid as vendor, and the acquisition value, being the purchase price paid when the property was acquired plus taxes and disbursements settled as purchaser.

Presently, there is a coefficient applicable per Law to update the acquisition value but, it is expected, that the mentioned coefficient is removed for owners who sell property of a certain value in the year 2015.

In general, the difference between the sale value and the acquisition value is the taxable income at 21%, as there is a partial exemption of 50%, for those capital gains which arise from the sale of an urban property acquired between 12th May 2012 and 31st December 2012. This partial relief is not applicable in cases of certain kinship, or when any of the circumstances stipulated in Article 42 of the Commercial Code apply.

At the time of the sale, the buyer has got the obligation to withhold and deposit with the Public Treasury 3% of the consideration agreed. In order to proof the deposit with the Tax Authorities, the purchaser will give to the non resident vendor a copy of the form 211, used to deposit the withholding.

In the event that the amount retained is higher than the tax to be settled by the vendor,  the seller will be entitled to claim the refund of the 3% retention or the amount retained in excess.

The tax return has to be presented within three months from the end of the period that purchaser has to deposit the withholding, which is one month from the date of the sale.

 

In the event that the vendor has the right to apply for the refund of the retention, it will be necessary to present a tax return form, together with the mentioned form 211.

Should you wish to obtain more information, please do not hesitate to contact our Firm.

  • Wim Lamers
  • Lawyers in Marbella, Property Lawyer in Marbella, Spanish Capital Gain Tax, Tax Advice Marbella,

Share this story

Categories