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If you sell your property
Whether you are resident or non-resident, if you sell your property in Spain and receive payment in Spain, you have the right to take out the money and send it wherever you like.
If the amount is more than €600, however, you must have your bank fill in one of the “B” forms to report the transaction. These forms list full identification, details of the source of the funds and reason for the transaction. The forms are required in order to keep some control over money laundering operations of black funds, where the source is not known.
The “B” form does not give Spanish authorities the power to refuse the transfer; it is only for information. In fact, our property seller does not need to present the form until 15 days after the transfer has taken place.
So, you can sell your property for €120,000, then chaiige euros into pounds, and send them to your British bank account immediately. Or sell for euros. You can have a bank cheque made out in your name or you can have the bank transfer the funds to your British bank.
When a non-resident purchases Spanish property, he must also fill in the proper form. This is only to show that he originally imported the foreign currency into Spain and is not using black money - undeclared profits inside Spain - to make the purchase.
The non-resident buyer can also present a certified cheque in foreign currency if he is paying in another country’s money. This is perfectly legal if the seller prefers to be paid in his own currency and avoids the need to fill in any forms at all.
The important element here is the identification. As long as the DGTE, the DirecciOn General tie Transacciones Exteriores, the General Directorate of Foreign Transactions, knows who you are, which means that Hacienda, the tax ministry, also knows who you are and what you have done, then they are satisfied.
If the taxes on the transactions are not paid, at least they know the name of the dodger and where to find him. The Spanish tax agency has another control on non-resident property sellers as well.
If you are a non-resident thinking you can take the money and run without paying your Spanish capital gains tax of 35 per cent on the profit, be warned that the purchaser of your property must pay five per cent of the total purchase price directly to Hacienda in your name, as a guarantee that taxes will be paid. (See tax section for details)
If you are tempted to obtain payment in some more portable and less traceable form, such as cash, bearer cheques, or gold coins, be warned that any such exportation over €30,000 is illegal unless the exporter obtains prior authorisation from the DGTE.
To do this legally, you must fill in form B-2, which contains all the pertinent information, and then await permission from the authorities to export the cash. This is routinely granted.You then present the authorisation at the border to be stamped by the Spanish customs agents.
Falsification of any of the information on the form is an offence, as is attempting to take out of Spain more than €30,000 in cash or gold or bearer cheques.
Requiring this authorisation to export money does not square with European Council directives regarding free circulation of
money and the European High Court has ruled that Spain may require notification but cannot limit the amount to be taken out.
Those caught taking out too much cash without authorisation can face prison sentences of up to 12 years. Spain so far has refused to change its legislation.
So Spain maintains a check on the amounts of foreign exchange passing across its borders, but you can transfer any amount of funds you choose in any form you choose. In practice the government does not deny the authorisation, but you are warned that Spain is keeping an eye on you for your tax obligations.
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