Spanish capital gains tax for non residents
The Spanish capital gains tax for non-residents taxes the increase in value experienced by those lands of an urban nature as a result of the transfer of a property by any title, by the constitution or transmission of any real right of enjoyment, limiting the ownership of the property land.
If the property of urban nature is sold by a non-resident natural person, it is the buyer who has the obligation to pay the municipal capital gain before the City Council as a substitute for the taxpayer. As the seller is the taxpayer as taxpayer, he will have to pay the buyer the amount of the tax.
This can be read in article 106 of Royal Legislative Decree 2/2004 of March 5, which approves the revised text of the Law Regulating the Local Treasuries, as well as the provisions of Article 36 of the General Law Tax.
In article 106 you can read:
The taxpayer is a taxpayer.
a) in the transmissions of land, constitution or transfer of real rights of enjoyment limiting the domain for profit, the natural or legal person or entity referred to in article 35.4 of Law 58/2003 of December 17.
b) In the transmissions of land, constitution or transfer of real rights of enjoyment limiting the domain for consideration. The natural or legal person or entity referred to in article 35.4 of Law 58/2003 of December 17, which transmits the land, constitutes or transmits the real right in question.
c) In those cases referred to in paragraph b of the previous section, the substitute taxpayer of the taxpayer, the natural or juridical person or the entity referred to in article 35.4 of Law 58/2003 of 17 will be considered December, that acquires the land or in whose favor the real right in question is constituted or transmitted, when the taxpayer is a natural person not resident in Spain.