Modelo 210 - Capital Gains

Non-Resident Capital Gains Tax

Non-Resident Capital Gains Tax applies to non-resident property owners who have sold their Spanish property. If you've sold your property in Spain, you are required to declare and pay taxes on any profit you've made from the sale. The submission of this tax is done through the Spanish Tax Form Modelo 210 to the Agencia Tributaria (national tax authority).

The tax rate for capital gains is 19%, and this rate remains consistent regardless of the residency status of the taxpayer.

The deadline is set at 4 months from the sale date. This provides ample time to gather all the necessary information and documentation required for accurate reporting.

Calculating Capital Gains Tax

The tax is calculated on the difference between the acquisition costs and the sale price, minus connected expenses: ((Sale Price + Connected Expenses) - (Purchase price + Connected Expenses)) x 19%.

Withholding Tax on Capital Gains

When a property owned by a non-resident taxpayer is sold in Spain, the buyer is obligated to withhold 3% of the sale price on account of the seller's Capital Gains Tax. This means that the buyer deducts this amount from the sale price and pays it directly to the tax authorities. The buyer must provide a copy of the Modelo 211 (withholding tax return) to the seller.

The seller is then required to report this withholding tax in their Capital Gains Tax return and account for it against their final tax liability.

If the calculated Capital Gains Tax is higher than the withholding tax, the seller needs to pay the difference to the tax authorities. On the other hand, if the withholding tax is higher than the tax due, the seller can claim the excess back from the tax authorities.