The Property Transfer Tax (ITP) represents the mechanism through which Spanish tax authorities collect the final tax applicable to non-residents. In the case of residents, the ITP acts as an advance on a tax that, in general, the resident taxpayer must self-assess on their final annual return.

This ITP prepayment system for residents also extends to situations in which non-resident companies or individuals, which are not established in Spain, sell their rights to real estate located in the country. In these cases, the buyer of the property must withhold 19% of the sale price on account of the tax that the seller must pay for the capital gain generated. Additional capital gains, such as those derived from the sale by a non-resident of a substantial interest in a Spanish company, are not subject to the ITP regime if double taxation agreements or domestic regulations do not provide for tax exemption. In these cases, the tax corresponding to the non-resident is paid directly, either through their representative or the depositary or manager of the assets in question, if any.

Below are the general types of withholding on income earned by resident and non-resident companies. The main characteristics of these types are detailed in the footnotes to the table. It is recommended to always consult specific treaties to verify that the values are up to date and to evaluate the potential impact of the Action of the Organization for Economic Cooperation and Development that has not been included in the mentioned treaties.

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