Instructions

Request for refund for exemption for reinvestment in habitual residence for taxpayers EU and EEA with effective exchange of information (Seventh Additional Provision of the consolidated text of the Non-Resident Income Tax).

Non-residents Income Tax.

References to the Tax Law and the Regulations contained in these instructions are understood to be made to the consolidated text of the Non-Resident Income Tax Law approved by Royal Legislative Decree 5/2004 (BOE of March 12), and to the Regulations of said Tax, approved by the sole article of Royal Decree 1776/2004, of July 30 (BOE of August 5).

Regulations

• Seventh Additional Provision of the consolidated text of the Tax Law.

• Second Additional Provision of the Tax Regulations.

General issues

With effect from 1 January 2015, taxpayers of Non-Resident Income Tax, resident in a Member State of the European Union or in a Member State of the European Economic Area with which there is an effective exchange of tax information1, may be entitled to have the capital gain obtained from the transfer of what was their habitual residence in Spanish territory excluded from taxation, provided that the amount obtained from the transfer is reinvested in the acquisition of a new habitual residence.

When the reinvested amount is lower than the total of the amount received in the transfer, only the proportional part of the capital gain obtained corresponding to the reinvested amount will be excluded from taxation.

For the purposes of applying the exemption for reinvestment, the provisions of articles 41 (exemption for reinvestment in habitual residence) and 41 bis (concept of habitual residence for the purposes of certain exemptions) of the Personal Income Tax Regulations shall be taken into account.

In the area of Non-Resident Income Tax, there are two different procedures for applying the exemption for reinvestment in primary residence:

• Apply the exemption when self-assessing the tax corresponding to the capital gain in declaration form 210, although this procedure is only applicable when the reinvestment has occurred prior to the date on which said declaration must be submitted.

• Otherwise, the non-resident taxpayer must submit a refund request adjusted to this model.

Return Request : This application must be submitted by taxpayers resident in a Member State of the European Union or resident in a Member State of the European Economic Area with which there is an effective exchange of tax information who consider themselves entitled to apply the exemption for reinvestment in a habitual residence and who have not taken this exemption for reinvestment into account when filing the tax self-assessment (form 210) corresponding to the capital gain derived from the transfer of the habitual residence.

Deadline : The application must be submitted within three months from the date of acquisition of the habitual residence.

Documentation : The application must be accompanied by documentation proving that the transfer of the habitual residence in Spanish territory, and the subsequent acquisition of the new habitual residence, have taken place.

Electronic submission of the application (option not available until 1-1-2016) will require that the aforementioned documentation be submitted in the form of electronic documents, using the “Provide additional documentation” option specific to this procedure.

Identification : Regardless of the form of submission of the application, the taxpayer must have a Tax Identification Number ( NIF ) and be identified, prior to submission, in the Census of Taxpayers.

Filing methods: Applications may be submitted in any of the following ways:

SUBMISSION METHODS FROM 1 JANUARY 2016:

Submission using printed paper generated exclusively by using the printing service developed for this purpose by the Tax Agency in its electronic headquarters (pre-declaration system).

Access the electronic headquarters of the Tax Agency and fill out the form available there, which will allow you to obtain printed applications valid for submission. The use of identification labels will not be necessary, since the printing service generates the label's own barcode with the owner's identification data.

OBTAINING THE PRINTED APPLICATION DOES NOT IMPLY THAT THE APPLICATION HAS BEEN SUBMITTED.

The application in printed paper obtained by using the printing service, accompanied by the corresponding documentation, must be submitted, in person or by certified mail, at the registration offices of the Tax Agency, addressed to the Delegation or Administration of the State Tax Administration Agency in whose territorial area the property is located.

Manual changes or corrections to printed data appearing on applications will not have any effect on the Tax Agency. However, for security reasons, the taxpayer's Tax Identification Number ( NIF ) must be completed manually.

Electronic submission via the Internet , using a recognized electronic certificate.

Electronic filing via the Internet through the Tax Agency's electronic office may be carried out:

1. By the taxpayers or, where applicable, their legal representatives.

2. By those voluntary representatives of taxpayers with powers or authority to electronically submit applications to the Tax Agency on their behalf or to represent them before it, under the terms established at any given time by the General Directorate of the Tax Agency.

3. By persons or entities that have the status of authorised agents in the application of taxes and meet the requirements and conditions established for this purpose by the regulations in force at any given time.

The taxpayer must have an electronic certificate, which may be the one associated with the electronic National Identity Document (DNI-e) or any other recognized electronic certificate that, according to the regulations in force at any given time, is admissible by the Tax Agency.

When the electronic submission is made by representatives or by duly authorized social collaborators, they must have their recognized electronic certificate.

The taxpayer or, where applicable, the presenter, must COMPLETE the data on the form that will be available on the electronic headquarters of the Tax Agency and TRANSMIT the application with the electronic signature system.

If the application is accepted, the Tax Agency will return the data validated with a secure 16-character verification code on the screen, in addition to the date and time of submission. The accepted and validated application must be printed and kept with the aforementioned secure verification code.

If the request is rejected, a description of the errors detected will be displayed on the screen. In this case, you must correct them in the entry form, or repeat the application if the error was caused by another reason.

Completing the application

Delegation or Administration

The Delegation or Administration corresponding to the location of the transferred habitual residence will be stated.

Identification of model 210 where the capital gain was declared

“ Accrual date (date of transfer of the habitual residence) ”: The accrual date that appears in Form 210 where the capital gain was declared will be recorded.

“ Proof number of the self-assessment form 210 corresponding to the capital gain obtained” : The supporting document number of the self-assessment form 210, through which the capital gain obtained from the transfer of what was the habitual residence, was declared, will be recorded.

Taxpayer

Whatever the form of submission, the taxpayer must have a Tax Identification Number ( NIF ) and be identified, prior to submission, in the Census of Taxpayers.

“ NIF ”: The tax identification number ( NIF ) assigned in Spain will be entered in this box.

"Surnames": The first surname and, where applicable, the second surname will be recorded in this same order.

“ Name” : the full name will be indicated.

" NIF in the country of residence": If the taxpayer has a tax identification number assigned in his/her country or territory of residence, it will be entered in this box.

"Birthdate": The taxpayer's date of birth will be indicated (day/month/year), in dd/mm/yyyy format.

"Place of birth": the taxpayer's place of birth shall be indicated. This section is subdivided into two:

• "City": The municipality and, where applicable, the province or region or department corresponding to the place of birth shall be recorded.

• "Country code": The country or territory code corresponding to the taxpayer's place of birth will be entered, in accordance with the country codes listed.

"Tax residence: Country Code" (1): The code for the country or territory of tax residence of the taxpayer will be recorded, in accordance with the country codes listed.

"Address in the country of residence": The address details in the country of residence that apply must be completed, taking into account the specific instructions indicated below.

• "Address" (7): The address corresponding to the domicile in the country of residence will be recorded: type of road (street, square, avenue, highway, etc.), name of the public road, house number, or, where applicable, kilometer point, etc.

• "Additional address information" (8): If applicable, any additional data necessary for the complete identification of the address will be recorded.

• "Population/city" (9): The name of the town or city in which the address is located will be recorded.

• "Postal code (ZIP)" (11): the postal code corresponding to the address will be recorded.

• "Province/Region/State" (12): When necessary for correct identification of the address of the residence, the name of the Province, Region, State, Department or any other political or administrative subdivision where the address is located shall be recorded.

• "Country code" (14): The country or territory code corresponding to the address will be completed, according to the country or territory codes listed.

• "Landline and mobile phones" (15) and (16): In order to expedite the resolution of any incidents that may arise during the processing of the self-assessment, enter in boxes (15) and (16) the telephone numbers, landline and mobile, where you can be most easily reached on working days and hours.

Representative of the taxpayer or, where applicable, address for notification purposes in Spanish territory

If the taxpayer has appointed a representative before the Tax Authority, domiciled in Spanish territory, in relation to his/her obligations under this Tax, this will be stated in this section.

In the absence of a representative, if the taxpayer has a domicile in Spanish territory, he or she may communicate this in this section for notification purposes.

There is an obligation to appoint a representative in the cases provided for in article 10 of the Tax Law. In other cases, this appointment will be voluntary.

“ NIF ”: the tax identification number of the representative will be recorded.
“Last names, or company name or denomination”:

For individuals, the first surname and, where applicable, the second surname will be recorded, in this same order.

For legal persons and entities, the company name or the full name of the entity must be entered, without anagrams.

"Name": For individuals, the full name must be entered.

“ Representative":

• Legal: Mark an X in this box when using this section to enter the legal representative's details.

• Volunteer: Mark an X in this box when using this section to enter the details of the voluntarily appointed representative.

"Home": The relevant address details will be completed, taking into account the specific instructions indicated below.

• (18). Type of road : Enter the name corresponding to the type or class of public road: street, square, avenue, roundabout, highway, descent, slope, passage, promenade, boulevard, etc.

• (twenty). Numbering type : Please indicate the type of numbering that applies: number (NUM), kilometer (KM), no number (S/N), etc.

• (twenty-one). House number : House identification number or, where applicable, kilometer point.

• (22). Number qualifier : If applicable, enter the information that completes the house number (BIS, duplicate -DUP.-, modern -MOD.-, old -ANT.-, etc.) or the kilometer point (meters).

• (28). Additional data of the address : If applicable, the additional data that are necessary for the complete identification of the address will be recorded (for example: Urbanización El Alcotán, Edificio La Peñota, Residencial El Valle, Polígono Miralcampo, etc.).

• (29). Town/City : Enter in this box the name of the town or city where the address is located, when it is different from the Municipality.

• (33) and (34). Telephones, landline and mobile : In order to expedite the resolution of any incidents that may arise during the processing of the self-assessment, enter in boxes (33) and (34) the telephone numbers, landline and mobile, where you can be most easily reached on working days and hours.

Information on reinvestment

The following reinvestment data shall be entered.

Amount obtained from the transfer of the habitual residence (2): the total amount obtained from the transfer will be recorded.

If applicable, part of the amount obtained in the transfer destined to the amortization of the outstanding loan (3): If external financing was used to acquire the transferred property and part of the amount obtained from the transfer is used to repay the outstanding loan, the amount used for repayment will be recorded in this section. Partial reinvestment is not considered to exist even if part of the amount obtained from the transfer is used to repay the outstanding loan.

Amount obtained from the transfer of the habitual residence that is eligible for reinvestment for the purposes of exemption (4): The difference between the amounts in boxes (2) and (3) will be recorded.

Amount reinvested in the acquisition of a new habitual residence (5): the amount that is reinvested in the acquisition of the new habitual residence will be indicated. If this amount is equal to that in box (4), the reinvestment will be total and all capital gains obtained will be excluded from taxation; If it is lower, the reinvestment would be partial and only the proportional part of the capital gain obtained that corresponds to the reinvested amount will be excluded from taxation.

Request for refund.

Any refund that may be made will be made by transfer to the bank account of the taxpayer indicated in the application, which must be identified by the IBAN code.

If it is a bank account opened in Spain, the IBAN will be entered in the specific space designated for accounts in Spain.

If it is a bank account opened abroad (EU/SEPA zone), the IBAN code of the account and the SWIFT-BIC code of the banking entity must be entered in the specific space intended for EU/SEPA zone accounts.

Date and signature

Applications to be submitted in printed form must include the date and signature. It must be signed by the interested party or by his/her representative.