Sale of Real Estate in Spain

– After selling my property, can I transfer the proceeds to a bank account outside Spain?

Yes, of course. There is no restriction at all in this regard in the event that the accounts are in the name of the vendors.

– When calculating the capital gain, which expenses can be deducted?

The fees paid to lawyers, notaries and registrars of property, VAT, Transfer Tax and Stamp duty, estate agents commissions and Plusvalia Tax, plus the cost of refurbishment or renovation of the property.

– I am a non-resident. If I do not get any profit from the sale of my Spanish property, do I still have to pay 3% withholding tax and claim for refund later?

Yes. Retention of 3% of the price to non-resident vendors is always done regardless of whether or not there is a benefit. If the Tax Authorities believe that the values ​​used to determine that there is no gain are correct and the vendor is up to date in the payment of taxes, they will proceed with the tax rebate.

– Does the Tax Office automatically refund the amounts withheld from non-resident vendors whenever there is capital loss?

No. The Tax Office may initiate a verification procedure of the values used for the calculation of the gain and even order a property appraisal by an official valuator.

– How long does the Treasury take to return the withheld figures to the non-resident vendors?

The Administration has a period of 10 months from the date of sale to communicate their own settlement and/or face refunding payment. After this time if no refund has been made the initial amount will be increased by default interest.

– What happens if the purchaser of a property sold by a non-resident does not pay in the required withholding or does it after deadline?

If retention is not paid in, the property will be bound to the payment of the lesser amount between the retention and the eventual tax to be paid. The vendor will never be affected.