Taxes for non-residents

TAXES FOR NON-RESIDENTS

Jan 13, 2021 |

What taxes must a non-resident foreigner pay when selling a home in Catalonia?

Non-resident foreign buyers must pay the same taxes as resident buyers. The difference lies in the taxes levied on the seller. In this case, there is a slight difference: while the resident seller will have to pay the Municipal Capital Gains Tax and the Personal Income Tax, the non-resident seller will have to pay the Municipal Capital Gains Tax and the Non-resident Income Tax.

Municipal Capital Gains Tax

This is a tax levied by each municipal council . This tax is levied on the increase in value of urban land; therefore, it is paid based on a coefficient based on the time elapsed between the purchase and sale, up to a maximum of 20 years.

Since the seller is a non-resident, the buyer is required to pay this tax on behalf of the seller. As a standard practice, it is usually withheld from the transaction value at the time the purchase agreement is signed at the notary's office.

Non-Resident Income Tax

This is a state-level tax levied on the acquisition of a capital gain. If this is the case, the Non-Resident Income Tax will be required. The buyer will be required to apply a 3% withholding tax on the registered value and pay it to the Treasury. Therefore, in this case, the withholding tax procedure is the same as for the previous tax.

Taxpayers who are not residents of Spanish territory must declare and, where applicable, pay the final tax, offsetting the amount withheld or paid on account by the purchaser within three months of the end of the deadline for paying the withholding.

If you're thinking of selling your home in Barcelona, we can help you with every step of the way, from an initial appraisal of your property to personalized support throughout the entire process, including the notary visit and subsequent tax settlement.