Capital Gains Tax When Selling Property in Spain as a Non-Resident

Key takeaway: Non-residents who sell Spanish property pay 19% capital gains tax on the profit. The buyer must retain 3% of the sale price as an advance payment to the Spanish tax authority.

What Is Capital Gains Tax in Spain?

When you sell property in Spain, any profit you make (the difference between the sale price and the original purchase price plus costs) is subject to capital gains tax, called plusvalía del Estado or ganancia patrimonial in Spanish income tax (IRPF/IRNR).

Rate for Non-Residents: 19%

Non-residents — including UK, German, Dutch and US nationals who own Spanish property but do not live in Spain — pay capital gains tax at 19% on the net gain. This rate applies to EU and EEA nationals; non-EU nationals also pay 19% (this was harmonised in 2021).

The 3% Retention Rule

When a non-resident sells Spanish property, the buyer must withhold 3% of the purchase price and pay it directly to the Spanish tax authority (AEAT) within 30 days. This is an advance payment on account of the seller's capital gains tax liability.

Example: you sell your apartment for €350,000. The buyer retains €10,500 and pays it to AEAT. You then file your capital gains tax return and if your actual tax liability is less than €10,500, you receive a refund. If it is more, you pay the difference.

How Is the Gain Calculated?

The taxable gain is calculated as:

Sale price − (Original purchase price + acquisition costs + improvement costs + selling costs)

Acquisition costs: ITP or VAT + AJD paid at purchase, notary and Land Registry fees, legal fees
Improvement costs: documented major works (not maintenance) carried out since purchase
Selling costs: estate agent commission, legal fees for the sale

Keeping all receipts and documentation from your purchase and any renovations is essential — they reduce your taxable gain.

Plusvalía Municipal

Separate from capital gains tax, sellers must also pay the plusvalía municipal (IIVTNU) — a local tax on the increase in the cadastral value of the land on which the property sits. The rate and calculation depend on the municipality and the years of ownership.

Following the Spanish Constitutional Court ruling in October 2021, you cannot be taxed on a plusvalía if the land value has not actually increased during your ownership — so it is worth having a lawyer check whether this tax actually applies in your case.

Selling as a Spanish Tax Resident

If you are a Spanish tax resident and sell your habitual residence (vivienda habitual), there is a full CGT exemption if you reinvest the full proceeds in another habitual residence within 2 years. Over-65s are also generally exempt from CGT on the sale of their habitual residence. These rules do not apply to non-residents.

Filing the Tax Return as a Non-Resident

As a non-resident seller, you must file form Modelo 210 within 4 months of the sale. Your lawyer should prepare and file this for you, including the calculation of the taxable gain and any deductible costs. If you are owed a refund of the 3% retention, it is claimed through the same form.