Form 211 is an unavoidable form for non-residents in Spain who acquire real estate. Its filing ensures compliance with tax obligations related to Non-Resident Income Tax. Therefore, the non-resident form 211 is based on the tax obligations, the filing procedures and the current regulations governing these obligations in Spain.
JDV Asesores for Expats and foreigners Self-employed would like to offer you this practical guide to facilitate understanding and compliance.
Understanding the 211 Non-Residents model
As we have already mentioned, form 211 is a determining component for those who operate in the Spanish real estate market as non-residents. Understanding it ensures compliance with the relevant tax obligations.
This form is used in the Non-Resident Income Tax (IRNR) return and applies specifically to withholdings made on the acquisition of real estate by non-residents. Its main purpose is to ensure that the Spanish State receives the corresponding tax withholdings at the time of the property purchase.
Legal and regulatory context
Form 211 is part of a legal framework that seeks to regulate real estate transactions carried out by non-residents. The regulations governing these obligations include Order EHA/3316/2010 and have been updated on several occasions, as evidenced by Order HFP/1338/2023. These provisions set out the guidelines that taxpayers must follow in order to comply with the Spanish tax authorities.
Relevance in real estate transactions
Very relevant if we take into account that it allows the tax authorities to supervise and regulate real estate transactions. It is a control measure to ensure that these transactions are carried out in accordance with the required legal channels and transparency.
Tax Obligations of Non-Residents
Non-residents in Spain are obliged to file form 211 whenever they are purchasers of real estate who do not have tax residence in Spain. This group includes both individuals and entities that acquire property in the country, without establishing a permanent tax domicile.
Having said that, there are circumstances in which it is not necessary to file form 211:
- Owning a permanent establishment in Spain
- When the property is used in the exercise of a business activity.
- Specific situations that may vary depending on the particular case of the purchaser.
This whole ecosystem will be easier for us to understand and comply with its guidelines if we are properly informed by a specialised international consultancy.
IRNR-related obligations
Logically, non-residents must comply with Non-Resident Income Tax (IRNR) when purchasing real estate. They must therefore make the corresponding withholding during the acquisition and file the corresponding IRNR return within the deadlines established by law.
They will also have to keep all documentation justifying the transaction and the payment of taxes for future audits or requests from the tax authorities and thus avoid possible penalties.
Procedures for filing form 211
There are different methods for filing form 211, so we are going to discuss the most important aspects of each of them.
☑️ Electronic and face-to-face formats
As you can see, Form 211 can be filed electronically or in person. Each format has its advantages and limitations.
Electronic filing
This can be done through the electronic office of the State Tax Administration Agency (AEAT).
Official presentation
It involves going to a tax office to submit the form in paper format.
☑️ Requirements and necessary documentation
Note the following:
- Identification of the purchaser
- Details of real estate
- Proof of payment
You will be required to provide personal details of the buyer, including tax identification number or equivalent document in your country of residence.
It is essential to include accurate information about the property purchased. This includes the address, type of property and purchase price.
Receipts or documents evidencing payment for the acquisition of the property should be submitted as part of the supporting documentation.
☑️ Use of electronic tools
Most tax processes (or at least many of them) can now be carried out using electronic tools provided by the Administration. The aim is to streamline processes and limit the need to be in person as much as possible.
For example, in order to file the form electronically, it is necessary to have a digital certificate or the PIN Key, which allows authentication at the electronic office. The AEAT’s electronic office is a protected and intuitive environment for everyone where various tax forms can be filed, including the 211. It is easy to track the status of the filing at a later date.
Form 211: Deadlines and time considerations
With regard to the dates established for filing form 211, each real estate acquisition transaction has specific deadlines. The dates are generally linked to the date on which the purchase is formalised, so we must be aware of these dates in order to file on time and comply with current regulations.
What happens if we miss the deadlines?
Surcharges on the amount to be paid or even financial penalties may be applied, not to mention that late filing may hinder the process of repatriation of funds associated with the sale of the property, which would generate additional complications for the taxpayer.
Significant changes affecting procedures and deadlines were established in 2023 due to the current needs of the real estate market.
Practical guide to filling in form 211
We have to go to the AEAT electronic headquarters to obtain form 211 to fill in. We then enter the purchaser’s tax identification number or equivalent document, as well as personal details. We now include address, type of property, and the agreed purchase price.
Finally, attach proof of payment and any relevant documents supporting the transaction.
Common mistakes and how to avoid them
It must be said that when filing form 211, it is easy to make mistakes. Before submitting it, it is necessary to make a thorough review of the declaration to prevent any mishaps.
Check that the identification numbers and property details are correct, and make sure that all the necessary documents are correctly attached. And, as we have just underlined, be sure that you are aware of the deadlines for submitting the tax return and avoid any surcharges.
How to correct a return already filed
If an error is identified in a return that has already been filed, a complementary self-assessment must be made. Use the same form but tick the correction option. You will have to clearly explain the reason for the correction in the filing and confirm that the new data is correct before filing.
Current regulations and recent changes
The rules governing form 211 for non-residents are based on several legal provisions, such as Law 35/2006, of 28 November, which establishes the Non-Resident Income Tax regime. This legal framework is complemented by Order EHA/3316/2010, which details the self-assessment forms, including form 211.
This set of regulations defines the formal and substantive requirements for complying with tax obligations in Spain.
Impact of Order EHA/3316/2010 and HFP/1338/2023
Order EHA/3316/2010 has been elementary in specifying the conditions under which Form 211 must be filed, including the established formats and deadlines. For its part, Order HFP/1338/2023 has introduced improvements in administrative processes, facilitating interaction between taxpayers and the Tax Agency.
The basic aim of these adjustments is to streamline the submission and handling of applications, thereby optimising the user experience.
Specific rules for Non-Resident entities
Non-resident entities are also subject to special regulations. Under the current provisions, they must comply with differentiated tax obligations depending on their activity and type of real estate acquired.
These entities should inquire about the specific filing requirements and any applicable exemptions to ensure that they are in compliance with Spanish regulations.
Asesoría fiscal y servicios especializados modelo 211 No Residentes
Given that the management of tax obligations for non-residents can be complex, it is advisable to put yourself in the hands of a specialised consultancy such as JDV Asesores for Expats and foreigners Self-Employed.
- Up to date knowledge of tax legislation.
- Personal advice adapted to the client’s situation.
- Identification of applicable deductions and exemptions.
- Minimisation of the risk of penalties for non-compliance.
Clients benefit from specific services, such as:
- Advice on the filing of tax forms.
- Management of administrative formalities related to taxation.
- Consultancy on optimisation of the tax burden.
- Representation before the Tax Agency in case of disputes.
Conclusions
Form 211 must be filed by all non-resident citizens in Spain in relation to their withholdings from real estate acquisitions.
It is a tax obligation that, logically, must be reflected in the Non-Resident Income Tax (IRNR) return. Like any other citizen, non-residents must comply with the corresponding tax withholdings at the time of purchasing property.
If you require help with the 211 non-resident tax form, please contact us through the following channels.
📞+34 93 215 98 23
