The purchase value is the purchase amount plus the expenses  paid that were involved in the purchase. The sale value is the sale amount minus the expenses in connection with the sale.

The expenses that can be deducted are the real estate commission, the lawyer fees, the Notary- and register fee.

The tax is a withholding tax when the seller is a non resident, i.e. the buyer must withhold 3% of the agreed price (regardless of whether the buyer is resident or not), using Form 211 to pay this 3% to the tax office. The buyer then provides the non-resident seller with a copy of the form, so in case the 3% exceeds the 18% applicable, the seller has to fill in the form 212 and present it in the tax office asking the refund of the excess.

In case the 3% withheld is less than the capital gain tax the seller may deduct the withheld amount from the tax payable in the return declaring the capital gain. If the tax withheld is not paid, the liability for the tax is attached to the property.

Filing period: 2 months from the end of the period in which the purchaser of the property must pay the withholding tax (which is one month from the date of the sale).

If you have any queries please do not hesitate to contact me at jose@lawfirminspain.com