Call now: (+34) 647 266 435     (+34) 956 642 171

Property Taxes Andalusia

withholding tax

Non Resident Withholding Tax on Sale of Property

retencion 3%

3% Withholding Tax for Non Residents

Non residents selling a property in Spain are not always easy to track down after the sale. For this reason the government makes the Buyer withhold 3% of the Purchase Price and pay it to the Treasury. This has to be done even when the Seller has made no profit from the sale.

Naturally, the Seller then gets to reclaim this amount.  In a nutshell, the Buyer pays using Form 211 and deducts this amount of what is owed to the Seller who reclaims at end of calendar year (Jan 1st – 20th) using Form 210.

The Seller passes the Buyer a copy of the Form 211 so the Seller can deduct this amount from the amount to be paid resulting from the declaration of the gain. If the withheld amount is greater than the amount payable, the refund of the surplus can be obtained.

The tax has to be made by the Buyer because otherwise the property will be subject to the payment of the smaller amount of the withholding tax.

There are 3 main scenarios when deductions can be made: No gain, partial gain and a gain but the property was your permanent home and you’re rolling the gain into another permanent home. Naturally, this last example is a tad unusual for a non resident.

Tax return form

Form 210, approved by Order EHA/3316/2010 of 17 December, declaring income type 28. However, when the exemption for reinvestment in a permanent home is applied, the type of income will be declared as 33 or 34, as corresponds.

Filing methods

  • on paper, generated as a result of printing the PDF form contained in the web portal of the Tax Agency.
  • online, via Internet.

When the property is of shared ownership by a married couple in which both spouses are non-resident, unlike normal requirements, you can make a single self-assessment for both or you.

Term: three months from the end of the period which the purchaser of the property has to deposit the withholding retention (this period is, in turn, of one month from the date of the sale).

Refund of the withheld surplus

In the case of capital losses, or if the withholding made is greater than the liability which should have been deposited, the taxpayer is entitled to the refund of the withheld surplus. The refund procedure starts with the filing of the tax return form.

Treasury Accountability – Late Refund

The Tax Agency may apply a provisional settlement within the six months following the end of the established period for filing the return. When the return is filed late, the six months will be counted from the filing date. If the provisional settlement is not made within this six-month period, the Tax Administration will refund any surplus paid above the self-assessed amount. If you still haven’t got your refund back after six months from filing date and it is not your fault, you will get a late payment interest added to the amount pending refund.

More Information from Spanish Tax Office

. . .
Property Purchase Taxes Andalusia

Property Taxes in Andalusia when Buying a Property

Property Taxes when Buying a Property in Andalusia

Buying a property in Spain is a straight-forward process. Each autonomous region has the right to set its own taxes, so differences do exist, although small. We help people buy and sell properties in Andalusia, in the provinces of Málaga and Cádiz. So, we provide information from the Junta de Andalucia’s website regarding the taxes levied on purchase and you can find general information on taxes levied on the Seller by the Town Hall, here. On the whole, budget about 13 – 15% on top of property purchase price for attendant costs. (Buying at auction has different requirements, find more here.)

 

Tax Payable – New Properties

First Transmissions of properties attract 10% tax plus a stamp duty on the drafting of the first title deed which is 1.5%. Total is 11.5%

 

Tax Payable – Resale Properties

For most people you pay 8% up to the first 400,000€, 9% on next 300,000€ and 10% on all amounts accruing after that.

The amount owing is calculated by multiplying the relevant band with the applicable coefficient as follows:

  1. Transfer of Tangible Assets

a) Property Transfer:

  • As a general rule, in the transfer of immovable property, as well as in the constitution and assignment of rights in rem over them, except in the real rights of guarantee, the tax rate will be obtained by applying, on the basis of the liquidation, the rate that results from the following rate:
Band payable in Euros Total Fees Euros Amount Due Euros Rate Applicable
0.00 0.00 400,000.00 8.00%
400,000.01 32,000.00 300,000.00 9.00%
700,000.01 59,000.00 There after 10.0%
  • Garages attached to the Property Purchase are included in the rates above, with a maximum of two. After which, in the case of transmission of buildings classified as urban parking space, the following rates apply:
Band payable in Euros Total Fees Euros Amount Due Euros Rate Applicable
0.00 0.00 30,000.00 8.00%
30,000.01 2,400.00 20,000.00 9.00%
50,000.01 4,200.00 There after 10.0%

b) Transmission of movable property and livestock

(as well as the constitution of real rights over them other than the guarantee):

  • 4 %, in general
  • 8%, on the transfer of boats of more than 8 metres in length and on vehicles of more than 15 horse power and objects of art and historical antiquities.
  • 5% in the transmission of real estate where the real value does not exceed 130,000 euros and it is to be the Buyer’s permanent residence and the buyer is under 35 years of age, or 180,000 euros in the case of a permanent residence where the Buyer suffers from a disability which is registered and measured as being equal to or greater than 33%.
  • 2% in the acquisition of housing for resale by a natural or legal person who carries on a business activity to which the rules of adaptation of the General Plan for the Real Estate Sector apply. (Aimed at constructors, developers and banks with repossessions, for example.)
  • 1%, for financial instruments of real security rights, pensions, bonds, loans and cession of credits.
  • Leases are governed by the scale of tax fixed by Law.

* With effect from January 1, 2015, tax rate offsets will be applied in the creation and exercise of purchase options in lease agreements related to certain payment operations.

Budget 13 – 15% on top of Property Purchase Price

In addition to the taxes there is also the need to pay stamp duty for new builds on the pages notarised for the Title Deeds, as well as general application of Notary’s fees, Land Registry fees and Lawyer’s / legal assessor’s fees (Gestor).  These days, most mortgage set-up costs are assumed by the lender. As a rough rule of thumb, allow 13% – 15% on top of the Purchase Price and note stamp duty for new builds.

Disclaimer: TMT Spain Real Estate has provided this information as a general guide only and it must not be relied upon in place of legal advice. Legislation is constantly updated and the reader must satisfy herself/himself of the accuracy of these contents.

 

“The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.” 
Maya Angelou

Looking to buy?

[button scheme=”green” fg_color=”rgb(10, 20, 30)” url=”https://www.tmtspain.com/contact-us/” size=”large”]Let us help![/button] Related » Property Taxes Andalusia
. . .