Taxes for Residents and Non-Residents

Most people find the issue of taxes in Spain very confusing.  Let us try and clarify this for you. 

TAXES PAYABLE ON SELLING YOUR PROPERTY

 NON-RESIDENTS

When you sell your property as a non-resident, ie you only have an N.I.E. Certificate, you have to pay 3% of the declared value which is the price you are putting in the Escritura to sell.  On the day you sign over your property in front of a Public Notary, the seller will have to give 2 cheques.  One for 3% taxes which the Notary will keep to pay your taxes.  This is obligatory so the Tax Office are guaranteed payment.  (This used to be 5% but as from this year it has reduced to 3%).

RESIDENTS 

When you sell your property as a resident ie. you have a Residency Card, the rules are different.  This time you pay 18% of the capital gains tax upon the sale (ie the profits).  You can reduce this by saving all your invoices for materials and services which you have incurred since your originally bought the property.  You dont have to pay the Notary a cheque to retain for the Tax Office like non-residents but you are expected to get a Gestoria to complete a Declaracion de la Renta every June.  This is the equivalent of the Income Tax forms we have in the UK. 

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