Real estate capital gains tax for non-residents in Spain, the famous 3% retention
Do you want to sell your property and your tax residence is outside Spain? In this case, the famous 3% retention is applicable.
Real estate capital gains tax for non-residents in Spain, the famous 3% retention
Do you want to sell your property and your tax residence is outside Spain? In this case, the famous 3% retention is applicable.
What is retention?
When a non-resident in Spain sells real estate, the Spanish administration must ensure that the capital gain tax is recovered at 21%. The retention of 3% therefore corresponds to a kind of advance paid to the Spanish state at the time of the sale of real estate in Spain for non-residents on the economic gain achieved.
How much is this retention?
The retention is 3%.
Once at the notary at the time of signing the final deed of purchase and sale of the property in question, a retention of 3% on the total amount of the transaction will be retained and then liquidated by your real estate agency or by your accountant. (called here the "gestor").
The deadline for presenting payment for the retention is one month from the signing of the deed.
What is the exact amount of capital gains tax?
The exact amount of the real estate capital gain tax is 21% of the actual realized capital gain.
If the sum corresponding to 3% is lower than that actually due, the difference would have to be paid. If it is higher, it is possible to claim the difference at the time of the tax return.
Good to know :
- In the event of exemption, the seller can provide a document certifying that he is not subject to this retention.
- It is advisable that the buyer beware of this retention. In the event of default by the seller, the Spanish administration will claim the amount due from the buyer. This is why at Privilege Home we are committed to liquidating this tax.
- Not to be confused with municipal capital gains, this is another tax to consider when buying and selling real estate in Spain.
As a reminder, the capital gain is calculated as follows: transfer value - acquisition value.
The transfer value is the value of the sale less taxes, fees and transfer costs.
The acquisition value corresponds to the purchase value plus taxes, fees and disposal costs; reforms and investments; less depreciation.