Many foreign owners selling a home in Spain discover two things rather late: at completion, part of the price is withheld by the buyer, and a few months later a tax return still has to be filed with the Spanish tax office. This article explains how Spanish capital gains tax works for non-resident sellers, which costs you can deduct, and how to work out what you will actually pay, with a worked example.
Who pays, and how much?
When a non-resident sells property in Spain, the gain is taxed in Spain under the Non-Resident Income Tax Act (IRNR). The rate is a flat 19% of the gain, whether you live in Sweden, Norway, the UK or outside Europe altogether. What is taxed is not the sale price but the difference between what you received and what the property cost you.
If there are two or more owners, each is taxed on his or her share and files a separate return. It makes no difference whether the property was empty, used as a holiday home or let out.
How the gain is calculated
The gain is the sale value minus the acquisition value. This is where most of the savings are, because both figures can be adjusted.
The acquisition value includes everything it cost you to buy: the price itself, transfer tax (ITP, normally 10% in the Valencian Community) or VAT and stamp duty on a new build, notary and Land Registry fees, and your lawyer’s fee. You may also add investments that improved the property, such as an extension, a new pool or glazing in a terrace. Ordinary maintenance, like repainting or a new fridge, does not count. Everything must be supported by invoices in your name.
From the sale value you deduct the costs of selling: the estate agent’s commission, the municipal plusvalía tax that you pay as seller, legal fees and, where applicable, the energy certificate.
If you bought before 1995, transitional rules may reduce the taxable gain. It is worth having this checked in each individual case.
A worked example
Anna, who lives in Gothenburg, bought an apartment in Albir in 2015 for €200,000. She paid €20,000 in ITP and around €4,000 in notary, registry and legal fees. Acquisition value: €224,000.
In 2026 she sells for €300,000. The agent charges €12,000, the plusvalía municipal comes to €2,500 and legal fees to €1,500. Net sale value: €284,000.
Gain: €284,000 – €224,000 = €60,000. Tax: 19% × €60,000 = €11,400.
Had Anna simply calculated €300,000 minus €200,000, she would have paid tax on €100,000, almost €7,600 too much. Keep every receipt from the purchase, even if selling feels a long way off.
The 3% the buyer withholds
At completion before the notary, the buyer is legally obliged to withhold 3% of the price and pay it to the tax office in your name (form 211). In Anna’s case that is €9,000. This is not the tax itself but a payment on account.
Within three months after the buyer’s one-month deadline, in practice around four months after the sale, you must file form 210 declaring the actual gain. If the tax is higher than the amount withheld, you pay the difference; Anna pays €2,400. If it is lower, or you made a loss, you claim a refund of the balance. The tax office has six months from the filing deadline to refund, after which interest runs in your favour. In practice refunds often take longer, and the Spanish bank account you give must still be open when the money arrives.
Two points to keep in mind
First, if you are resident in an EU or EEA country and the property you sell was your permanent home, the gain may be exempt if you reinvest in a new permanent home. This is an exception with strict conditions and does not apply to holiday homes.
Second, the gain normally also has to be declared in your home country. Under Spain’s double taxation treaties, Spain has the right to tax gains on Spanish real estate, and the Spanish tax is then credited against the tax due at home. You do not pay twice, but you do have to file on both sides.
The legal basis
The rules are in the Spanish Non-Resident Income Tax Act (Royal Legislative Decree 5/2004), in particular Articles 24, 25.1(f) and 25.2, which set the 19% rate and the buyer’s duty to withhold 3%. The way the gain is computed follows the resident income tax act (Law 35/2006), Articles 34 and 35.
Do the sums yourself
Want an estimate of your tax before you set the asking price? Use our free calculator: Capital gains tax on a Spanish property sale. For the municipal tax, see our plusvalía calculator.
Contact us
We handle the whole sale, from reviewing the purchase contract to filing form 210 and recovering the 3%. We work in English, Swedish and Spanish.
Email: [email protected]
Phone: +34 629 549 430
Web: www.colas-abogados.com
Colás Abogados / Advokater – Hugo Gutiérrez Colás, lawyer no. 6.539 ICALI, Alfaz del Pi (Costa Blanca). This article is general information and does not replace individual advice.