Property sales by non-residents

When the seller of a property located in Spain is not tax resident in the country, the transaction follows its own rules, which affect both seller and buyer. It is a common situation in areas with foreign buyers and owners, and also when a Spanish owner has moved abroad.

In these transactions, the buyer must withhold part of the price and pay it to the tax authority on account of the seller's tax. The withholding is 3% and must be paid within one month; if the buyer fails to withhold, the property is liable for that amount.

The seller must declare the gain made on the sale. If resident in the EU or EEA, the gain is taxed at 19%, and any withholding in excess of the tax can be recovered. If the amount withheld exceeds the tax due, a refund of the difference can be claimed.

Like any seller, a non-resident must deal with municipal capital gains tax. In these cases the buyer pays the municipal capital gains tax as the non-resident seller's substitute.

Most of the work can be done remotely: you send us the documents, we review the transaction, coordinate with the notary and the other party, and file the returns. If a power of attorney or a representative is needed, we will tell you and help you arrange it.

If you are buying from a non-resident seller, you should be clear about your obligations before signing. We review the whole transaction as part of our legal assistance with property purchases and sales and file your property transfer tax.

• The seller's passport and NIE.
• The seller's tax residence certificate, to apply the double taxation treaty.
• The purchase deed and receipts for expenses and improvements.
• The draft sale deed.
• The latest property tax (IBI) receipt.

• Signing without having agreed how the withholding will be made.
• Not filing the seller's return once the sale is completed.
• Not claiming a refund when the amount withheld exceeds the tax.
• Forgetting municipal capital gains tax.

We review the transaction before signing, explain each party's obligations, prepare the returns and, where applicable, claim the refund. Everything can be handled remotely.