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FORM 211: Sell a Property as a Non-Resident

Those people who do not have their tax residence in Spain but who obtain income in the country must pay the Non-Resident Income Tax (IRNR), as established in form 210.

In addition, when a non-resident sells a flat in Spain must pay a percentage to the Treasury. This is regulated by Form 211 and we will explain in more detail below since it is a topic that is often unknown.

Are you a tax resident in Spain?

To find out if you are a Tax Resident in Spain or not, you have to comply with a series of requirements established by the IRPF. In its article number 9 makes it 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.
– Be the legally separated spouse with minor children who are habitually resident in Spain and depend on that person.

Form 211 IRNR: Withholding in the transmission of a building

When buying a property in Spanish territory from a person who is not a tax resident in Spain, the buyer must retain a sum of money equivalent to 3% of the purchase price to enter it into the Treasury. The declaration of this withholding, and subsequent income, is made through Form 211, whether the acquirer is a natural or legal person and whether or not a tax resident.

Once the amount of the 3% withheld has been paid, a copy of the payment receipt must be delivered to the non-resident who has sold his property so that he can deduct it when declaring the gain obtained by the transmission.

To calculate the equity gain, you must subtract the value of the sale from the value of the purchase and add the costs of the purchase (taxes included). Once you get the result, you must pay 19% for the difference if it is from the European Union, Norway or Iceland or 24% from another country. This amount will be deducted from the 3% of Form 211 that should be given.

When to declare Form 211?

The presentation of the declaration and the income of the money equivalent to 3% of the purchase price must be made within one month from the date of transmission of the property.

And Form 210 declaring the equity gain obtained where the amount of the 3% retained will be deducted, must be made within 4 months from the date of transmission of the property.

At GM Tax we will solve all your doubts about the Non-Resident Income Tax Law (IRNR) and its Form 211, which can sometimes bring headaches. We have extensive experience in managing issues related to the Tax Agency and we adapt to each case personally. Contact our tax advisors in Barcelona by email or phone.