Form 210: for The Sale Of Real-Estate By a Non-Spanish Resident
The sale of real-estate in Spain from Non-Spanish Residents is taxed by the “Non-Resident Income Tax” (IRNR) rate. This requires a series of obligations for both the buyer and seller of the property.
The Buyer must submit Form 211 (modelo 211) for declaring Income Tax for Non-Spanish Residents.
Money should be withheld from the sale of property made by a Non-Spanish Resident. The amount is 3% of the purchase value, and from the proportion of the percentage owned by the seller in the property, in the case there are two or more owners.
The deadline for submitting Form 211 is one month from the date of transfer, and is withheld in the payment to the seller at the time of signing the deed over.
It must be checked, whether it is the notary themselves or the agency in charge of the procedures as to who prepares and submits that declaration with the corresponding amount.
The person assigned to make the transfer should present Form 210, for declaring the Income Tax of a Non-Spanish Resident without a permanent establishment.
When declaring the tax, the things that should be taken into account are the net gain, the transfer value and cost of sale, with a tax rate of 19% of the profit, and deducting the amount withheld for 3% of the sale value (portion or percentage) submitted from the buyer in Form 211.
The deadline for submitting this declaration is 3 months from the date the deposit was transferred. This generally works out to be 1 month from the date of sale.
Capital Gains Tax in Spain
Capital gains tax is the tax made on the Increase in value of urban land when sold. This should be paid within 30 business days from the date of sale. This is a separate tax on top of the IRNR amounts owed from selling real-estate.
If you are a Non-Spanish Resident taxpayer with real estate located in Spain, and you are selling, you should understand your obligations with capital gains or the taxes involved.