Tax Retentions

(Only for Non-Resident Sellers)

At the time of print and under current legislation, property sellers who are non- resident of Spain will be liable to a tax retention levied at 3% of the declared purchase price of a property.

This 3% is retained by the purchaser (or legal representative) and must be paid to the Spanish Inland Revenue within 30 days of signing of the title deeds.

The retention is made, whenever the vendor is a non-resident of Spain to ensure that any taxes he may owe to the Spanish Inland Revenue are paid before he ‘disappears’ to his country of origin.

The purchaser is responsible to ensure that the money is retained and paid to the Spanish Inland Revenue. It is then the responsibility of the seller to claim the money back (usually via his fiscal advisor) if tax is not due.

In the event the seller is a Spanish resident, then there is no need to retain the 3%, as the seller will most likely be making his own tax returns in a normal way.

Part of the REAL ESTATE MY HOME service is to lease with your solicitor to ensure that any retentions are duly made and paid to the Spanish Inland Revenue, together with completion of the relevant paperwork. By utilising our service and instructing a solicitor our clients need not to be concerned with tax retentions.