MODEL 211

Income Tax for Non-Residents

The Income Tax for Non-Residents is the tax which the Treasury taxes the income obtained in the spanish territory from those natural persons or entities not residents in Spain.

Model 211 IRNR: Retention in the transfer of a property

When a property that is in Spanish territory is purchased from a person who does not reside fiscally in Spain it is mandatory that the buyer withhold an amount of money equivalent to 3% of the price of the purchase to enter it  into the Treasury. The declaration of this withholding, and subsequent entry, is made through model 211 , whether the purchaser is a natural or legal person and whether he is a fiscal resident or not.

Once the amount of the 3% withheld has been paid, a copy of the proof of payment must be given to the Non-Resident who has sold his property so that he can deduct it at the time of declaring the gain obtained by the transfer. To calculate the capital gain you must subtract the value of the sale from the value of the purchase and add the expenses of the purchase (including taxes).

If this presentation of model 211 is not made with the amount of the withholding, the property will be subject to payment of the amount that is less between said withholding and the tax. Correspondent.

In summary

Model 211 is the retention of 3% that the buyer makes to the seller for the sale of the home, and the buyer has to pay within 30 days, from the date of signing the deed. The seller can request the return of that 3% that has been retained, provided that the sale price of the home is below the purchase price that he bought it in his day, in other words, if he bought it for 150,000 € + taxes + notary + registry + agency, all that if you add more than the price for what you have sold will have the right to return the totality of the withheld, if it is not the whole, it can be a part but it is always convenient to do the calculations to know if they return him or not.

Is there an exception to the obligation to retain?

Yes, the retention will not have to be practiced when the seller credits his fiscal residence in Spain by means of a certification that must be issued by the competent body of the Tax Agency.

Are you a Non-Resident Prosecutor?

To know if you are a Fiscal Resident in Spain or not, you have to meet a series of requirements established by the Personal Income Tax Law. In his article number 9 makes clear that Spanish residents will be those who:
● Stay more than 183 days a year in the country.
● Have the core of their economic activities in Spanish territory, directly or indirectly.
● Are the spouse not legally separated with minor children who habitually reside in Spain and depend on that person.