INCOME TAX FOR NON-RESIDENTS – Model 211

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 located in Spanish territory is purchased from a person who does not reside in Spain for tax purposes, it is mandatory for the buyer to retain an amount of money. The amount will be equivalent to 3% of the purchase price to be deposited in the Treasury. The declaration of this withholding, and its subsequent payment, is made through form 211. Whether the acquirer is a natural or legal person and whether he is a tax resident or not.

Once the 3% withheld amount has been paid, a copy of the payment receipt must be delivered to the Non-Resident who has sold their property. You can deduct it when you declare the profit obtained from the transfer. To calculate the capital gain you must subtract the sale value from the purchase value and add the purchase expenses (taxes included).

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

Form 211 is the 3% withholding that the buyer makes to the seller for the sale of the home. The buyer must pay within 30 days from the date of signing the deed. The seller can request the return of that 3% that has been withheld. As long as the sale price of the home is lower than the purchase price for which it was purchased at the time. If you bought it for €150,000 + taxes + notary + registration + agency, if you add more than the price of what you sold you will have the right to receive a refund of the entire amount withheld. If it is not the total, it can be a part but it is always convenient to do the math to know if it is returned or not.

Is there an exception to the obligation to retain?

Yes, withholding will not have to be carried out when the seller proves his tax residence in Spain through certification. The certification must be issued by the competent body of the Tax Agency.

Is it your responsibility to pay the Income tax for Non-Residents?

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.