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Until recently, when non-residents wanted to sell their property, they would take 5% from the purchase price from the buyer and give it to the Spanish tax authority as a pre-tax. This has not changed dramatically, other than that the pre-tax rate was lowered to 3% in the new Income Tax laws introduced in 2006.
The name 'pre-tax' should give you a clue. That’s not all; previously the seller would have to pay an additional 35% (minus the amount paid in pre-tax) on the profit of the sale in his next tax return.
The really new thing is that this rate has now been reduced to 18%, which has eliminated the discrepancy between sellers with the tax-domicile in Spain, and those who are domiciled aboard.
