How is the sale of furniture taxed for non-residents

How is the sale of furniture taxed for non-residents when it is sold together with the property?

It is very important to differentiate between two possibilities:
·      When they are included in the overall sale price without differentiation.
·      When separate values are given in the sale.

In the first option, these will be taxed jointly with the sale of the property, having the obligation to declare the total amount in the capital gain.

In the second case, different points must be determined, as well says the resolution of the TEAC of September 25, 2023.

We must consider that, according to the criteria followed by the Tax Agency and the Central Economic Administrative Court, the fact that this price has been included separately in the deed of sale is not sufficient justification to prove that they have not been transferred together with the property, or that the furniture was already included when the purchase was made.

In order to be able to justify that indeed that furniture should not be included in the capital gain to declare in Spain, it is important to take into account the following:
1-Include an Annex with all the movable goods that are going to be transmitted.
2-Save the invoices of purchase of that furniture, so that in the case that the Tax Agency demands a justification, to be able to have a documentary proof of it.

Fulfilling these two requirements, in principle, it is sufficient proof that this transmission has been made separately, and therefore it should not be included in the declaration of the capital gain together with the property.

However, it is important to mention that the capital gain derived from the sale of the furniture must be declared in the country of Tax Residence of the taxpayer, as mentioned in this resolution.

Therefore, it is advisable to make a Tax Planning prior to the sale of the property, to determine which option is more beneficial for the taxpayer.