What is a Resident Person

According to the European-Spanish Law, A Resident Person is who meets each and everyone of the following requirements: 

1. Stays more than 183 days of a year within the Spanish territory.

2. Who has a  registered office of business in Spanish territory, directly or indirectly.

3. Married to a Spanish National, not legally separated with  children under legal age who must habitually reside in Spain and who are dependent upon that person.

(IRPF Law, article 9)

A "Non Resident Person": Is one who does not meet any of the above requirements.

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If the Buying party is a Non-Resident person: 

You will be required to obtain a Foreginer Identification Number N.I.E. prior to signing of a Public Deeds of Purchase, requesting this document in the Office of Foreigners or in the Spanish Consular offices located in the Country of residence of the fufure Buyer.

This request for a NIE requires you to fill in a form to obtain this new identification, it is required to present a copy of the Passport and communicate the economical, professional or social reasons that justify the request of the NIE in Spain.

Opening a bank account in Spain with the purpose of give security to the tax authorities in regard the future tax payments that have to be attached to the purchase.

After for filling the above requirements,  the Non-Resident person can buy a property in Spain having the same rights and obligations as the rest of the Spanish citizens.

If the Selling party is a Non-Resident person: 

The Non Resident Seller must have an N.I.E. and will be subject to the following taxes: 

1. Rental tax of Non Resident (IRNR)

2. Capital gain tax (Plusvalía)

As a general rule and with the purpose of guarantee the tax obligations of the people that buy a property in Spanish territory and they are Non-Residents, the Buyer is obligated to retain from the final price of sale:  3% in the moment of the signature of the Public Deed before a Notary. This 3% retained by the Buyer will be notified directly by the Public Notary in the Public Deeds of purchase. The Buyer is obligated to fill in a form Model 211 within 30 days after the date of the Public Deeds making payment in favour of the Tax Office for the total of 3% retained from the Seller with the concept: "part payment for the income tax for Non Residents".

Exception:  This retention does not have to be applied by the Buyer to the Seller in the case that the Seller proves with a tax office certificate that he is subject to paying income tax in Spain (IRPF) or operates under corporation tax system and the property is owned by his Spanish registered company.

Following with the question of the retention made by the Buyer, he must provide a copy of the Model 211 and a copy of the payment of the retention to the Seller, so that the Seller, within a period of 4 months, can declare the income tax through the tax Model 210.

Please note that if the property has been sold with negative equity, the Seller must submit a replacement appeal or present a letter to the Town Hall (Finance Department) requesting the annulment  of the "Plusvalía" tax or capital gain.

Usually the presentation of the 211 Model tax with the 3% withholding and the presentation of the capital gain tax are done at the same time because from its payment, the Treasury will calculate if the Seller must pay more money (if there are benefits on the sale) or less money (if there are losses with the sale).