"Impuesto sobre la Renta de las Personas Físicas" (IRPF) 

IRPF stands for "Impuesto sobre la Renta de las Personas Físicas," which translates to "Income Tax for Individuals." Every seller who is not a tax resident in Tenerife must pay 3% as a withholding tax deposit when selling a property, which can be applied in certain real estate transactions.

When a person sells a property, especially if the seller is not a tax resident in Tenerife, the tax authority can withhold a certain percentage of the sale price as a measure to reduce the risk of unpaid taxes. This withholding is considered an advance payment of the tax that the seller should pay in their income tax return for the profit from the property sale.

For example, if a person sells a property for $100,000 and is subject to a 3% withholding tax, the tax authority will withhold $3,000, and this amount will be used as an advance payment of the taxes that will correspond to the profit from the sale. Then, the seller will have to report the transaction in an appropriate income tax return and calculate the final taxes, which can vary depending on deductions, costs, and other factors.