<\/p>\n\n\n\n
In order to clarify possible doubts in relation to the expenses arising from the purchase of a property by foreign or Spanish persons not resident in Spain, we will deal with this issue in a comprehensive manner.<\/p>\n\n\n\n
When is a person considered a non-resident in Spain?<\/strong><\/h3>\n\n\n\nArticle 9 of the Law on Personal Income Tax and partial amendment of the laws on Corporate Income Tax, Non-Resident Income Tax and Wealth Tax.<\/a>The Commission shall, in the absence of proof to the contrary, regard the following as resident person<\/strong>and, therefore, not subject to the particularities discussed below, to those persons who:<\/p>\n\n\n\n\n- Stay more than 183 days a year in Spain.<\/li>\n\n\n\n
- Have the core of their economic activities in Spanish territory, directly or indirectly.<\/li>\n\n\n\n
- Your spouse or children are habitually resident in Spain.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Sale and purchase of real estate by foreigners or non-resident Spaniards<\/strong><\/h2>\n\n\n\n<\/div>\n\n\n\n![\"\"](\"https:\/\/odiceabogados.com\/wp-content\/uploads\/2023\/01\/Compraventa-de-inmuebles-por-personas-extranjeras-o-no-residentes-en-Espana-1-1024x512.png\")
<\/figure>\n\n\n\n<\/div>\n\n\n\nWho pays tax on the sale of a property?<\/strong><\/h2>\n\n\n\nThe purchase and sale of a property implies a series of tax payments when the transaction has been carried out. Based on this premise, we will analyse the two scenarios that may arise in a situation of purchase and sale of real estate by foreign or Spanish persons not resident in Spain and explain who is liable to pay the taxes on the transaction.<\/p>\n\n\n\n
<\/div>\n\n\n\nScenario 1: foreign or Spanish non-resident buyer<\/h3>\n\n\n\n
Once the obligatory documentation has been submitted, the buyer will have the same rights as a Spanish resident citizen to purchase the property.<\/p>\n\n\n\n
If it is a second-hand property<\/strong>in Andalusia the purchaser will assume:<\/p>\n\n\n\n\n- The Property Transfer Tax (I.T.P.)<\/strong>currently 7% on the sale price.<\/li>\n\n\n\n
- The IRPF<\/strong> in the next income tax return campaign, in the event that it is not destined for the main residence.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
If it is a new building, <\/strong>the buyer shall be responsible for:<\/p>\n\n\n\n\n- The Value Added Tax (V.A.T.)<\/strong>10 % for dwellings and attached garages, 21 % for premises and detached garages.<\/li>\n\n\n\n
- The Tax on Documented Legal Acts (I.A.J.D.)<\/strong>1.2% on the selling price.<\/li>\n<\/ul>\n\n\n\n
In both cases, the seller, if resident in Spain, must pay the local capital gains tax within the first 30 working days of the sale of the property to the corresponding body (Town Hall or Patronato de Recaudaci\u00f3n Provincial). <\/p>\n\n\n\n
<\/div>\n\n\n\n![\"\"](\"https:\/\/odiceabogados.com\/wp-content\/uploads\/2023\/01\/Compraventa-de-inmuebles-por-personas-extranjeras-o-no-residentes-en-Espana-1024x512.png\")
<\/figure>\n\n\n\n<\/div>\n\n\n\nScenario 2: foreign or non-resident Spanish seller<\/h3>\n\n\n\n<\/div>\n\n\n\nNon-resident income tax:<\/h4>\n\n\n\n
As discussed above, the Spanish or foreign buyer, whether resident or not in Spain, is obliged to withhold 3% from the value of the sale. <\/strong>and pay it to the tax authorities in the name of the non-resident seller - within one month from the date of the sale of the property - by presenting the Model 211<\/a>.<\/p>\n\n\n\n
- \n
- Stay more than 183 days a year in Spain.<\/li>\n\n\n\n
- Have the core of their economic activities in Spanish territory, directly or indirectly.<\/li>\n\n\n\n
- Your spouse or children are habitually resident in Spain.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Sale and purchase of real estate by foreigners or non-resident Spaniards<\/strong><\/h2>\n\n\n\n
<\/div>\n\n\n\n<\/figure>\n\n\n\n<\/div>\n\n\n\nWho pays tax on the sale of a property?<\/strong><\/h2>\n\n\n\n
The purchase and sale of a property implies a series of tax payments when the transaction has been carried out. Based on this premise, we will analyse the two scenarios that may arise in a situation of purchase and sale of real estate by foreign or Spanish persons not resident in Spain and explain who is liable to pay the taxes on the transaction.<\/p>\n\n\n\n
<\/div>\n\n\n\nScenario 1: foreign or Spanish non-resident buyer<\/h3>\n\n\n\n
Once the obligatory documentation has been submitted, the buyer will have the same rights as a Spanish resident citizen to purchase the property.<\/p>\n\n\n\n
If it is a second-hand property<\/strong>in Andalusia the purchaser will assume:<\/p>\n\n\n\n
- \n
- The Property Transfer Tax (I.T.P.)<\/strong>currently 7% on the sale price.<\/li>\n\n\n\n
- The IRPF<\/strong> in the next income tax return campaign, in the event that it is not destined for the main residence.<\/li>\n<\/ul>\n\n\n\n
<\/div>\n\n\n\nIf it is a new building, <\/strong>the buyer shall be responsible for:<\/p>\n\n\n\n
- \n
- The Value Added Tax (V.A.T.)<\/strong>10 % for dwellings and attached garages, 21 % for premises and detached garages.<\/li>\n\n\n\n
- The Tax on Documented Legal Acts (I.A.J.D.)<\/strong>1.2% on the selling price.<\/li>\n<\/ul>\n\n\n\n
In both cases, the seller, if resident in Spain, must pay the local capital gains tax within the first 30 working days of the sale of the property to the corresponding body (Town Hall or Patronato de Recaudaci\u00f3n Provincial). <\/p>\n\n\n\n
<\/div>\n\n\n\n<\/figure>\n\n\n\n<\/div>\n\n\n\nScenario 2: foreign or non-resident Spanish seller<\/h3>\n\n\n\n
<\/div>\n\n\n\nNon-resident income tax:<\/h4>\n\n\n\n
As discussed above, the Spanish or foreign buyer, whether resident or not in Spain, is obliged to withhold 3% from the value of the sale. <\/strong>and pay it to the tax authorities in the name of the non-resident seller - within one month from the date of the sale of the property - by presenting the Model 211<\/a>.<\/p>\n\n\n\n
- The Tax on Documented Legal Acts (I.A.J.D.)<\/strong>1.2% on the selling price.<\/li>\n<\/ul>\n\n\n\n
- The IRPF<\/strong> in the next income tax return campaign, in the event that it is not destined for the main residence.<\/li>\n<\/ul>\n\n\n\n
- The Property Transfer Tax (I.T.P.)<\/strong>currently 7% on the sale price.<\/li>\n\n\n\n
![\"\"](\"https:\/\/odiceabogados.com\/wp-content\/uploads\/2023\/01\/compraventa-persona-no-residente-en-Espana-1024x512.png\")
<\/figure>\n\n\n\n