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Filing Deadline

Spain Tax Deadline December 31st

Applicable Taxes

Tax on Disposal of Property

Spanish Capital Gains Tax (CGT)

Spanish CGT will apply to a gain arising on the sale of the Spanish property which must be declared within three months (no indexation or rollover relief available).

The current rate of Spanish CGT is 19%. It should be noted that any Spanish CGT paid by an Irish resident individual should be creditable against any Irish CGT arising on the same disposal under the Ireland/Spanish double tax treaty.

Withholding Tax on Sale of Property

According to Spanish fiscal law, if you are non-resident and sell your property in Spain, the purchaser is obliged to withhold 3% from the sale price. This reflects a payment on account of the capital gains tax which is payable to the Spanish Treasury (Tesoro Publico) on Form 211.

The purchaser then provides the non-resident seller with a copy of this form so that they may deduct the withholding tax from the capital gains tax payable. If the 3% is greater than the actual calculated capital gains tax you are entitled to reclaim the difference.

Please note:
The withholding tax will not be applied to the sale of properties which were acquired before 1986, provided they have not suffered improvements.

Spanish Gift & Inheritance Tax

In the case of the gift of the property or the death of the owner of the property, the transfer would be subject to gift or inheritance tax respectively.

The tax due would depend on the owners relationship with the donee, the heir's pre-existing wealth and the value of the property. The marginal rate is 34%.

Any gift or inheritance tax would not be available as a credit against Irish gift or inheritance tax payable upon the gift or inheritance (although it should be possible to claim a full deduction for this amount determining the value of the gift or inheritance for Irish tax purposes).

It should also be noted that gift or inheritance tax applies on gifts or inheritances between spouses.

Tax Returns and Filing Deadlines

There is a long list of returns in the Spanish Tax system and the procedures for submitting them can be complicated.

The most important returns applicable to non-resident individuals are:

  • Form 210 or Form 215 – Rental Income Return (210 Declared Monthly or one month after rent is due, Form 215 declared quarterly, in the first 20 days of the month following the end of the quarter).
  • Form 211 – Payment of Withholding Tax by purchaser of property where vendor is non-resident.
  • Form 212 – Settlement of tax payable / repayable by non-resident vendor (This form must be submitted together with a copy of the Form 211 (above) given to you by the purchaser.

Filing Deadlines

In addition to the monthly returns, an annual form (Form 210) is to be presented before 30 June each year following the year of assessment.

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