Selling property in Spain as a non-resident can be a complex process, but it is important to understand the taxes involved and the steps required to ensure a successful sale.
Taxes
Non-resident sellers of property in Spain are subject to a number of taxes, including:
- Non-resident income tax (IRNR): This tax is payable on the capital gain made on the sale of the property. The capital gain is calculated by subtracting the purchase price of the property, plus any expenses incurred during the ownership period, from the sale price. The rate of IRNR payable on the capital gain depends on the taxpayer’s country of residence.
- Municipal capital gains tax (Plusvalía): This tax is payable to the local municipality on the increase in the value of the land since the property was purchased. The amount of Plusvalía payable depends on the cadastral value of the land and the number of years the property has been owned.
- Wealth tax: Non-resident owners of assets in Spain are subject to wealth tax if the total value of their assets exceeds €700,000. The rate of wealth tax payable depends on the value of the taxpayer’s assets.
Selling process
The selling process for non-resident sellers of property in Spain is generally the same as for resident sellers. However, there are a few additional steps that non-resident sellers must take, such as:
- Obtaining a non-resident tax certificate (NIE): This certificate is required for all non-resident taxpayers in Spain.
- Paying non-resident income tax (IRNR) on the capital gain made on the sale of the property: This tax can be paid through the Spanish tax office or through a tax representative.
- Filing a tax return in Spain: Non-resident sellers of property in Spain are required to file a tax return in Spain, even if they do not have any other taxable income in Spain.
International marketing
If you are a non-resident seller of property in Spain, it is important to market your property to a wide range of potential buyers, including international buyers. There are a number of ways to do this, such as:
- Listing your property on international real estate websites
- Advertising your property in international property magazines and newspapers
- Working with a real estate agent who has experience in selling property to international buyers
Conclusion
Selling property in Spain as a non-resident can be a complex process, but it is important to understand the taxes involved and the steps required to ensure a successful sale. By working with a qualified tax advisor and a real estate agent who has experience in selling property to international buyers, you can minimize the stress and hassle of selling your property in Spain and maximize your chances of getting a good price.
Here are some additional tips for international marketing your property in Spain:
- Translate your property listing into multiple languages: This will make your property more visible to international buyers.
- Use high-quality photos and videos: This will help buyers to get a good sense of your property and its location.
- Highlight the unique features of your property: What makes your property stand out from other properties in Spain?
- Be responsive to inquiries: Respond to inquiries from potential buyers promptly and professionally.
By following these tips, you can increase your chances of selling your property in Spain to an international buyer.
There are two main taxes that you may have to pay when selling property in Spain:
- Non-resident income tax (IRNR): This tax is payable on the capital gain made on the sale of the property. The capital gain is calculated by subtracting the purchase price of the property, plus any expenses incurred during the ownership period, from the sale price. The rate of IRNR payable on the capital gain depends on the taxpayer’s country of residence. For non-residents from EU and EEA countries, the rate is 19%. For non-residents from outside the EU/EEA, the rate is 24%.
- Municipal capital gains tax (Plusvalía): This tax is payable to the local municipality on the increase in the value of the land since the property was purchased. The amount of Plusvalía payable depends on the cadastral value of the land and the number of years the property has been owned.
If you are a non-resident seller of property in Spain, you may also be liable for other taxes, such as wealth tax. It is important to seek professional advice to determine your tax liability when selling property in Spain.
Here are some additional tips for minimizing your tax liability when selling property in Spain:
- Keep accurate records: This will help you to substantiate your expenses and reduce your capital gain tax liability.
- Sell your property after the ownership period has exceeded 10 years: After 10 years of ownership, the capital gain tax rate on the sale of property is reduced by 10% per year.
- Consider reinvesting the proceeds from the sale of your property in another property in Spain: This may entitle you to a tax deduction on your capital gain tax liability.
It is important to note that tax laws are subject to change, so it is always best to seek professional advice before selling property in Spain.
