Why did non residents overpay Capital Gains Tax?
The overpayment stems from the different tax laws applicable for taxation of Residents and Non Tax Residents. In the years in question (prior to 2007), the tax law for Personal Income Tax of Spanish residents had established the tax rate applicable to capital gains derived from the sale of real estate at 15%, whereas the similar tax law for personal income tax of non Spanish tax residents had established the tax rate applicable to this very same capital gains at 35%.
