Selling a property in Spain when you are not a tax resident here involves some specific obligations. Knowing them in advance helps you calculate how much you will really receive from the sale and avoid paying more tax than necessary.
Capital gains tax: 19%
Non-residents pay Non-Resident Income Tax (IRNR) on the gain obtained from the sale, at a rate of 19%. The gain is, in broad terms, the difference between the sale price, less the selling costs, and the purchase price, plus the costs and taxes paid when you bought it and the documented improvements made to the property. Keeping all invoices and deeds is therefore essential.
The 3% retention
When the seller is a non-resident, the buyer is legally required to withhold 3% of the agreed price and pay it to the Spanish Tax Agency, using form 211, within one month of the sale. This amount is a payment on account of your tax.
The seller must then file form 210 to declare the actual gain within the three months following the end of that one-month period. If the 3% withheld is higher than the tax due, you can claim a refund of the difference; if it is lower, you will have to pay the rest. If the sale produces a loss, the full 3% can be claimed back.
Municipal plusvalía
The town hall charges the tax on the increase in value of urban land (IIVTNU), known as the plusvalía municipal, which is normally paid by the seller. Since the reform of 2021, the taxpayer can choose between an objective calculation and one based on the real gain, and no tax is due if there has been no increase in value. Comparing both methods can lead to significant savings.
Documents you will need
- Your NIE and passport.
- The title deed and the latest IBI (municipal property tax) receipt.
- A valid energy performance certificate.
- A certificate from the community of owners showing that there are no outstanding fees.
- Proof of the purchase costs and improvements, to calculate the gain correctly.
Other costs of the sale
Depending on what is agreed, the seller may also pay the estate agent’s commission, the cancellation of any outstanding mortgage and part of the year’s IBI. Our taxes and expenses calculator gives you an indicative estimate of the sale costs.
How we can help
At Ramallo Abogados we calculate your tax before the sale, review the contract, attend the signing on your behalf with a Power of Attorney if you cannot travel, file forms 210 and plusvalía and manage the refund of any excess retention. Request a consultation.
This article provides general information and reflects the rules in force when it was published. It is not legal advice: every case must be studied individually.
