At the time of print and under current legislation property sellers who are non resident of Spain will be liable to a tax retention levied at 3% of the declared purchase price of a property.
This 3% is retained by the purchaser (or his legal representative) and must be paid to the Spanish Inland Revenue within 30 days of signing of the title deeds.
This retention is made, whenever the vendor is a non-resident of Spain to ensure that any taxes he may owe to the Spanish Inland Revenue are paid before he 'disappears' to his country of origin.
The purchaser is responsible to ensure that the monies are retained and paid to the Spanish Inland Revenue. It is then the responsibility of the seller to claim the money back (usually via his fiscal advisor) if tax is not due.
In the event the vendor is a Spanish resident (and has submitted a tax return), then there is no need to retain the 3%, as the vendor will most likely be making his own tax returns in the normal way.
Part of the TENERIFE ROYALE ESTATE AGENTS S.L. service is to liaise with your solicitor to ensure that any retentions are duly made and paid to the Spanish Inland Revenue, together with completion of the relevant paperwork. By utilizing our service and instructing a solicitor our clients need not be concerned with tax retentions.