Here is some information for you to consider:

The buyer needs to withhold 3% of the purchase price and send it with “modelo 210” to the tax office within 30 days of purchase on behalf of the seller. No worry, our lawyer can do this administration. 

If you made a loss on your sale, you could ask our lawyer to help you claim back part or total of the 3%.

19% Capital Gains Tax will apply to profits for Residents Eurozone, Iceland, Norway

24% NON EU residents

OTHER TAXES

You also need to take into account that both non-resident as well as resident sellers need to pay the “Plus valia”( municipal land value tax). A tax on the increase in value of urban land from acquisition to sale (or inheritance/Donation)

In the case of non-residents, this tax will be retained by the buyer to ensure it is paid.

All non residents must also complete each year a NON resident Income tax form, number 210 for any assets in Spain. The tax must be paid by the end of the calendar year for the previous year.

You must present this tax form, regardless of whether used for commercial gain such as  renting or personal use. This is paid quarterly if you have tenants or yearly if no tenants.

A lot of foreign non resident property owners in Spain, should declare taxes but are not aware of this tax form Modelo 210 and simply don’t pay it.

The Spanish tax system is one where YOU need to declare things yourself, you can’t wait until you receive a tax bill from the government (Spain is different).

So let’s imagine you (European citizen) own a property in Spain as a non-resident and you do not rent it out.

How much is this tax and how can you calculate it?

First you need to take your IBI bill (Municipal Property tax). On this bill you will find a figure called “Valor Catastral”. Attention! Not the “Valor Catastral Suelo” which is the value of the plot.

There is a difference between EU citizens with 19% tax, and non-EU owners (British nationals living outside of the EU, Iceland and Norway) who pay the higher tax rate of 24%.

To see how much income tax equates to, let’s now use the example of a property with a cadastral value of €100,000 x 1.1% is €1,100. You will therefore pay tax on €1,100 per year. An EU resident will pay a tax rate of 19% of the calculated €1,100. This equates to €209 per year, in comparison to a non-EU resident which will pay 24%. This equates to €264 per year.

More than 50% of foreign property owners are not aware of this tax. That’s one of the reasons that when a non-resident sells their property, the buyer has to retain and pay 3% of the sales price to Spanish tax authorities. This is a provision for taxes due; this is not a tax.

Info in English from the Spanish tax office