Non-resident vendors get hit by Spanish capital gains tax retention on property sales

clThe taxman wants the money in case the vendor
When a non-resident sells property in Spain, theydoes a runner without paying his taxes, something that
buyer is obliged to retain 3% of the price and pay it toalmost all non-resident vendors have done in the past.
the tax authorities to cover the vendor’s taxVarious terms in English and Spanish are used to
liabilities. If the vendor is due a refund after the tax hasidentify this procedure. In Spanish it is known as the
been paid, it can take years to get money back.‘retención (sobre la venta de inmuebles)
If the Spanish tax authorities consider a vendora cuenta del impuesto de la renta de los
non-resident in Spain for tax purposes, the buyer hasno-residentes’, whilst in English it is referred to
to withhold 3% of the sale price to cover theas the capital gains tax retention on property sales.
vendor’s tax liabilities resulting from the sale.