Reclaim 3% Withholding Tax in Spain

Who it is for

This service is for people who do not pay tax as residents in Spain and who have sold, or will soon sell, a property there. When such a person sells, the buyer must keep back 3% of the price and pay it straight to the Spanish Tax Agency (called the AEAT). This is an advance payment towards the tax the seller may owe on their profit.

Sometimes the tax actually owed is less than the 3% kept back, or the seller made a loss. In that case the seller may be able to get some or all of that money back. The steps to do this are complicated, and this service helps with them.

What you need

• You must be a non-resident for tax purposes who sold a property there.
• You need the papers for the sale, including the signed sale deed from the notary and receipts for costs and improvements to the property.
• You need proof of the 3% payment made by the buyer.
• You must be able to show your profit or loss, which means comparing what you paid for the property with what you sold it for.

How it works

• Get a copy of the buyer's 3% payment (form 211).
• Work out the profit or loss, counting all costs and improvements that are allowed.
• If the tax due is less than the 3%, or there was a loss, send form 210 for non-residents to the Tax Agency with the supporting papers.
• Be ready for the Tax Agency to check the claim, and keep all documents.

What the service includes

• A first talk to understand your case and explain the process
• Checking all papers about the purchase and the sale
• Working out the profit or loss, counting every allowed cost
• Preparing and sending form 210 with the supporting papers on time
• Dealing with the Tax Agency, including any questions or checks
• Following the refund until the money is paid back to you
• Advice afterwards on any further duties

Why it helps

English-speaking lawyers handle the Spanish tax process and the contact with the Tax Agency for you, which makes it less stressful and helps make sure nothing is missed.