By Home Kare · 8 min read · Owner’s Guide
Selling property in Spain as a non-resident follows clear rules, but they catch out owners who don’t plan for them. The buyer holds back 3% of your price at the notary, your real tax is a flat 19% on the gain, and there’s a second local tax most sellers forget. This guide walks an HDA owner through every cost and deadline so you know your true net before you accept an offer.
19%CGT on the gain (all non-residents)
3%Withheld at completion
4 mthsTo file Modelo 210
30 daysTo settle plusvalía
The two taxes you pay when you sell
A sale triggers two separate taxes, both normally paid by the seller. The first is national capital gains tax on your profit. The second is a local town-hall tax on the land value. Budgeting for both is the difference between a clean sale and an unwelcome surprise.
- Capital gains tax (IRNR) — a flat 19% on your gain, the same for everyone who is non-resident, whether you live in the EU or not.
- Plusvalía municipal — a separate tax paid to the local town hall on the increase in the land’s value during your ownership.
💡 It’s 19%, not 24%
On a Spanish property sale the non-resident gain is taxed at a flat 19% (article 25.1.f of the non-resident income tax law). The 24% figure you may have read is the general non-resident rate for other income — it is not the rate on your property gain.
The 3% retention explained
When the seller is a non-resident, the buyer is legally required to withhold 3% of the agreed price at completion and pay it to the tax office using Modelo 211, within one month of signing the deed. It is deducted from your proceeds, not added to the buyer’s cost.
That 3% is not your final tax. It is an advance against your capital gains bill. You — or your lawyer — then file Modelo 210 within four months of the sale to declare the real gain and settle up:
- If your 19% bill is lower than the 3% withheld, you reclaim the difference (refunds typically take 6–12 months).
- If it is higher, you pay the balance when you file.
⚠️ Miss the four months and you lose the refund
If the 3% was more than your real tax but you don’t file Modelo 210 in time, you forfeit the money. On a low or zero gain that can be thousands of euros left with Hacienda. Always file, even at a loss.
How your gain is calculated
Your taxable gain is the sale price minus your acquisition value minus allowable costs. Keeping the paperwork from your original purchase is what protects you here, so dig out those invoices before you list.
You can deduct:
- The original purchase price.
- Acquisition costs — notary, registry, the ITP or VAT you paid, and conveyancing fees.
- Documented improvement works (not routine maintenance), with invoices and proof of payment.
- Selling costs — agency commission, notary, and the plusvalía paid on the sale.
| Worked example | Amount |
|---|---|
| Sale price | €250,000 |
| Purchase price + acquisition costs | €205,000 |
| Documented improvements + selling costs | €15,000 |
| Taxable gain | €30,000 |
| Capital gains tax at 19% | €5,700 |
| 3% retention held at completion | €7,500 → €1,800 refundable |
Figures are illustrative. Your real position depends on your costs and documentation.
Plusvalía municipal: the tax sellers forget
Plusvalía is a local tax on the rise in the land’s value while you owned it, paid to the town hall within 30 days of the sale. Since the 2021 reform you can choose between two calculation methods — one based on the cadastral value, one on your real gain — and you are entitled to pick the lower.
If you sell at a documented loss, no plusvalía is due, but you must still report the sale to the town hall to claim that. Plusvalía paid at sale is also deductible against your capital gains tax.
Don’t assume the resident exemptions apply
Two reliefs that residents rely on do not reach non-residents, and getting this wrong is an expensive mistake:
- The over-65 exemption on a main home does not apply if you are non-resident — the tax authority has confirmed this (rulings V2530-25 and V1002-25).
- The reinvestment exemption for buying another main home is a resident relief; a Spanish holiday home is not your main residence.
Thinking of selling at HDA? Start with a realistic valuation.See how we sell at HDA →
Three things to sort before you sign
- Energy Performance Certificate. It’s legally required to market and sell; arrange it early.
- An active NIE. Your NIE must be live and linked to the tax agency to complete; if it’s been dormant for years your lawyer may need to reactivate it.
- Mortgage cancellation. If a loan is still registered against the property, it must be cancelled at the registry as part of the sale.
💡 UK owners: you won’t be taxed twice in full
Under the UK–Spain double tax treaty, Spain taxes the gain on Spanish property first. The UK may also tax it, but you credit the Spanish tax already paid against the UK bill, so the same gain isn’t taxed twice over.
The selling timeline at a glance
- Agree the sale and sign at the notary; the buyer pays you the price less the 3%.
- Within 1 month — buyer files Modelo 211 and pays the 3% to the tax office.
- Within 30 days — settle plusvalía with the town hall (or report the loss).
- Within 4 months — file Modelo 210 to settle or reclaim your capital gains tax.
- 6–12 months — any refund is paid out by Hacienda.
Frequently asked questions about selling property in Spain as a non-resident
How much capital gains tax do non-residents pay in Spain?
A flat 19% on the gain, the same whether you live in the EU or outside it. The gain is the sale price minus your acquisition value and allowable costs.
Do I get the 3% retention back?
If your real 19% tax is less than the 3% withheld, yes — you reclaim the difference by filing Modelo 210 within four months. Refunds usually take 6–12 months.
What happens if I sell at a loss?
You owe no capital gains tax and no plusvalía, but you must still file to report the loss and recover the 3% retention. Skipping the filing means you lose that money.
Can I sell my Spanish property without coming to Spain?
Yes. You can grant your Spanish lawyer a power of attorney to handle the notary signing and the tax filings on your behalf.
Does the over-65 exemption apply to me as a non-resident?
No. The over-65 and reinvestment exemptions are reliefs for Spanish residents on their main home and do not extend to non-resident sellers.
Official sources: the Spanish Tax Agency (Agencia Tributaria) publishes the non-resident income tax rules and the Modelo 210/211 procedures, and the UK government’s Living in Spain guidance covers tax for UK owners.
This guide is general information, not tax or legal advice. Rates, deadlines and reliefs can change and depend on your circumstances. Confirm your position with a Spanish tax adviser or lawyer before accepting an offer.
Planning to sell your home at Hacienda del Álamo? We handle the sale end to end and connect you with the right tax and legal support.Talk to Home Kare →