real estate agency tarragona

Capital Gains Tax Rebate Non-Residents (IRNR) Sale of a Home in Spain3 min read

Hurray, your house in Spain has been sold. The local council and the Spanish tax authorities are also cheering, because they are getting some extra income. You pay them the local sales tax plusvalia municipal (municipal tax). The amount differs per municipality. As a non-resident, you also ‘automatically’ pay the Spanish state a capital gains tax of 3% on the sale of your property on the day of the property transfer.

What is it exactly?

  • Are you a non-resident in Spain? Then at the moment of sale, 3% of the sale price will be withheld at the notary’s office to be paid to the Spanish tax authorities. This payment has the character of a deposit (so that sellers can’t get out of paying the tax by leaving). As a non-resident seller, you then have a number of months to submit the final declaration. If the final tax is higher, you have to pay the difference, but if it is lower, you can reclaim the difference;
  • The difference between the sale and purchase price can be reduced by direct costs such as the transfer tax, notary costs (in case of purchase) and sales costs (the broker’s commission or sales guidance, costs made for arranging the sales documentation such as the Cédula de Habitabilidad , the Energy Certificate, the plusvalia municipal etc.);
  • Are both owners older than 65 years? Then you don’t pay 3%. If you invest part of the proceeds to buy a new home, you can get an extra tax reduction.

How does it work?

You can do the refund yourself after installing a digital certificate.

However, 3% of the sales price is often a lot of money. It is too much not to ask for a refund and to bet on a substantial tax reduction.

Our advice is to immediately get an accountant to help you get the maximum refund and tax reduction possible. What the accountant needs is an extract of the tax paid. You can get this receipt from the notary’s administration department. Ask the estate agent involved to help you with this and or coordinate this with them yourself on the day of the sale. Inform the accountant of the date of the transfer of the property so that a return can be filed in time.

The home owners who sell their property through us automatically benefit from tax advice. Do you want to sell your home? Please let us know. Are you about to go to the notary to sell your property in Catalonia and specifically the Costa Daurada and do you need an accountant? Mail us at team@casalunya.com . We will bring you in contact with an accountant who can help you with this, and let you know the rates. If you want to be helped in Dutch, that is also possible. The advantage of the accountant(s) we work with is that the communication is in Dutch, the declarations can be done remotely and you can visit them in Tarragona or Barcelona if you have questions or just want to arrange something face-to-face.

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