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V1629-14 25 June 2014 · SG de Fiscalidad Internacional Criterion in force
IRNR · retención

Buyer must withhold 3% if seller is non-resident without permanent establishment

A Swiss company without a permanent establishment in Spain asks whether it must withhold tax when purchasing property. The DGT responds that the obligation to withhold 3% depends on whether the seller is a non-resident without a permanent establishment or a tax resident in Spain.

The question raised

The applicant raises the following questions:

The DGT's ruling

If the transferor is a non-resident income tax (IRNR) taxpayer acting without a permanent establishment, the acquirer must withhold 3% of the consideration using Form 211. If the seller is a tax resident in Spain (subject to Personal Income Tax or Corporate Tax), no withholding is applicable provided they prove their tax status through a certificate from the Administration. The consulting company shall not be required to file a tax return (Form 210) for the income received if the corresponding withholding or payment on account has been made.

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