Selling property in Spain as a non-resident: the 3% retention, capital gains and plusvalía

If you live outside Spain and sell a home here, the sale follows the usual notarial process, with three tax features that surprise many owners: the buyer keeps back 3% of the price and pays it to the Spanish Tax Agency, you file your own non-resident return to settle the capital gain, and the town hall charges its own tax on the increase in land value (the plusvalía). This guide explains each step as the rules stand on 8 October 2026, for owners resident in the UK, Scandinavia, the Netherlands, Germany, the US and elsewhere who are selling on the Costa del Sol, in Seville or anywhere else in Spain.

Who counts as a non-resident seller

What matters is your tax residence, not your nationality or your residence card. If you are not resident in Spain for tax purposes, the gain is taxed under the Non-Resident Income Tax (IRNR). If you are in fact a Spanish tax resident, the 3% retention does not apply and the gain goes on your ordinary Spanish return, so settle this question before you sign. You will also need your NIE (foreigner’s identification number) for the notary and the tax returns.

The 3% retention paid by the buyer

When the seller is a non-resident without a permanent establishment in Spain, the buyer must withhold 3% of the agreed price and pay it to the Tax Agency with Modelo 211 within one month of the deed of sale (article 25.2 of the Non-Resident Income Tax Act).

• The 3% is calculated on the full price, not on your profit.
• It is a payment on account of your tax, not an extra tax.
• It applies even if you sell at a loss. In that case the whole 3% is refundable.
• You need a copy of the buyer’s Modelo 211 to claim the credit, so the contract should oblige the buyer to provide it.

Modelo 210: settling the tax or claiming the refund

The seller files Modelo 210 to declare the gain or loss. For property sales it is due within three months after the end of the buyer’s one month period, whatever the result: tax to pay, nothing to pay or a refund (Order EHA/3316/2010, article 5). In practice, that is about four months from completion.

• If 19% of your gain exceeds the 3% withheld, you pay the difference.
• If it is lower, or you made a loss, the same return claims the excess back.
• Co-owners, such as spouses, each file for their own share and take credit for their share of the 3%.

Late filing normally brings surcharges and delays any refund, so note the date on the day you sign.

Capital gains tax: rate and calculation

The rate is 19%, including for UK and US residents

Gains obtained by non-residents on the sale of property are taxed at 19% (article 25.1.f of the Non-Resident Income Tax Act), whatever the seller’s country of residence. The 24% rate quoted in many guides applies to other income, such as rent received by owners resident outside the EU and EEA, not to the gain on a sale. Brexit did not change the rate for UK sellers; what they lost is the EU/EEA reinvestment relief explained below.

Acquisition value and transfer value

The gain is the transfer value minus the acquisition value, under the Spanish income tax rules (article 35 of the Income Tax Act):

Acquisition value (what you add)	Transfer value (what you subtract from the price)
Price in your purchase deed	Agency commission paid by you
Taxes paid on purchase (transfer tax, or VAT and stamp duty)	Notary, legal and other sale costs paid by you
Notary, registry and legal fees on purchase	Plusvalía municipal, if borne by you
Documented improvements, not ordinary repairs	Energy certificate and similar selling costs

Mortgage interest is not deductible. If the property was let, depreciation may reduce the acquisition value, which is worth checking before you file. Keep every deed and invoice: costs you cannot prove will not be accepted.

Purchases before 1995 or in 2012

If you bought before 31 December 1994, part of the gain may be reduced under a transitional rule, subject to an overall limit of €400,000 in sale value. If you bought urban property between 12 May and 31 December 2012, half of the gain is generally exempt, with exclusions for purchases from related parties.

Reinvestment relief for EU and EEA residents

If you live in another EU member state, or in an EEA country with effective tax information exchange such as Norway or Iceland, you may exclude the gain on the sale of what was your main home in Spain if you reinvest the whole amount obtained in a new main home within two years, before or after the sale (additional provision seven of the Non-Resident Income Tax Act). Partial reinvestment exempts a proportional part. It does not cover holiday homes, and residents of the UK, the US and Switzerland cannot use it.

The buyer still withholds 3%. If you have reinvested by the time you file Modelo 210, you apply the exemption there; if you reinvest later, you pay and then claim a refund with Modelo 228.

Your home country

Under Spain’s double tax treaties, including the 2013 treaty with the United Kingdom, Spain may tax gains on Spanish property. Your country of residence will usually tax the same gain and give credit for the Spanish tax, so speak to your adviser at home before the sale. In Spain, the annual non-resident tax on an unlet property (imputed income) is still due for the days you owned it in the year of sale, filed the following year.

Plusvalía municipal (IIVTNU)

The plusvalía taxes the increase in value of the land under the property. It is separate from capital gains tax.

Who pays

On a sale the taxpayer is the seller, but when the seller is a non-resident individual the law makes the buyer liable as substitute (article 106.2 of the Local Finance Act). The buyer will therefore keep back an estimate from the price and pay the town hall. The return is due within 30 working days of the deed (article 110). Agree in writing who files it and how any difference is settled.

Two calculation methods since Royal Decree-law 26/2021

• No gain, no tax. If the land has not increased in value between purchase and sale, the tax does not apply. You must declare the sale and provide both deeds (article 104.5).
• Objective method. The cadastral land value is multiplied by a coefficient based on years of ownership (up to 20), and the municipal rate is applied, which cannot exceed 30% (articles 107 and 108).
• Real gain method. If you prove that the real increase in land value is lower, the tax is calculated on that real increase (article 107.5). Each sale should be calculated both ways.

Royal Decree-law 29/2026, published on 7 October 2026, sets new maximum coefficients from 1 December 2026. It is pending parliamentary validation and each town hall applies its own coefficients within those limits, so a sale signed in late November may be taxed differently from one signed in December.

Exemptions are narrow. The main one for individuals is the transfer of a main home to the bank in lieu of a mortgage debt (dación en pago), under strict conditions (article 105). An ordinary sale will not normally qualify.

Documents and practical steps

Energy certificate

The energy rating must appear in any advertising, and a copy of the registered certificate is attached to the sale contract (Royal Decree 390/2021, articles 15 and 17). Commission it before listing.

Occupation licence or habitability certificate

This depends on the region and the building. In Andalusia, occupation of new or altered buildings is now usually covered by a responsible declaration of occupation under Law 7/2021 (LISTA), in place of the old licence of first occupation. Buyers and lenders may ask for it, particularly for newer properties or extensions. Other regions have their own rules, which we check at the start.

Mortgage cancellation

Ask your bank for the pay-off figure at the completion date. At completion part of the price goes to the bank, which grants a cancellation deed. That deed must then be registered so the charge disappears from the land registry. Agree who handles and pays for it.

Community fees and IBI

• Community of owners: you must provide a certificate from the community secretary showing you are up to date, issued within seven calendar days of request. Without it the deed cannot be signed unless the buyer expressly waives it, because the property answers for unpaid fees of the current year and the three previous ones (article 9.1.e of the Horizontal Property Act).
• IBI (council tax): bring the latest receipt, as unpaid IBI follows the property. The year’s IBI is usually shared as agreed in the contract.

Tenanted property

If the home is let as a main residence, the tenant has a preferential right to buy at the same price (article 25 of the Urban Leases Act) and must be notified formally. Royal Decree-law 29/2026, in force since 8 October 2026 and pending validation, prevents this right from being waived.

Power of attorney

You can sell without travelling. Grant a power of attorney before a notary in your country with the Hague Apostille (available in the UK, the US, the Netherlands, Germany and the Nordic countries), usually with a sworn translation unless it is bilingual, or sign it at a Spanish consulate. Ask us for the wording first: a power that does not cover selling, receiving the price, cancelling the mortgage and the tax returns will stop the completion.

Anti-money laundering checks and repatriation

Notaries are bound by the anti-money laundering law (Law 10/2010). They will identify you and anyone acting for you, and the deed must record how the price is paid (article 24 of the Notaries Act). Banks will ask for documents too. There are no exchange controls on sending the proceeds abroad; keep a certified copy of the deed and your tax returns, as your bank and adviser at home will ask for them.

Worked example

Illustrative example with round figures. It is not advice for any particular sale.

A UK resident bought an apartment in 2015 for €300,000 and paid €25,000 in purchase taxes and fees. In 2019 they spent €20,000 on a documented renovation. They sell in November 2026 for €500,000, paying €30,250 agency commission (VAT included), €5,000 in other sale costs and a plusvalía of €3,500, which the buyer retains and pays to the town hall.

Item	Amount
Acquisition value (300,000 + 25,000 + 20,000)	€345,000
Transfer value (500,000 less 30,250, 5,000 and 3,500)	€461,250
Capital gain	€116,250
Tax at 19%	€22,087.50
3% withheld by the buyer (Modelo 211)	€15,000
Balance to pay with Modelo 210	€7,087.50

Had the apartment sold for €330,000 with similar costs, there would be no gain: the buyer would still withhold €9,900 and the seller would reclaim it in full. Had the seller lived in the Netherlands, used the apartment as their main home and reinvested the whole amount in a new main home within two years, the gain could be fully exempt.

Timeline and checklist

When	What	Who
Before listing	Energy certificate; land registry extract; NIE; purchase deed and improvement invoices; IBI receipt; mortgage pay-off figure; tenancy position	Seller and lawyer
Offer accepted	Deposit contract (arras) covering the 3%, the plusvalía and the Modelo 211 copy	Both parties
Before completion	Power of attorney with apostille; community certificate; plusvalía by both methods	Seller and lawyer
Completion	Deed signed; mortgage paid off; 3% and plusvalía estimate retained	Notary, both parties
Within 1 month	Modelo 211 filed; copy to seller	Buyer
Within 30 working days	Plusvalía return	Buyer as substitute, or as agreed
3 months after the first month	Modelo 210: pay the balance or claim the refund	Seller
Following year	Imputed income return; return in your country	Seller
Within 2 years (EU/EEA)	Reinvestment; Modelo 228 if needed	Seller

For the transaction itself, see our guides to property lawyers in Spain, property law on the Costa del Sol, our property lawyer in Marbella and real estate lawyers in Seville.

Frequently asked questions

Does the buyer still withhold 3% if I sell at a loss?

Yes. The buyer withholds 3% whenever the seller is a non-resident, whatever the result. You recover it in full with Modelo 210, filed within three months after the buyer’s one month period ends.

What capital gains tax rate does a UK resident pay on a Spanish property sale?

19%, the same as other non-residents. What UK residents lost after Brexit is the reinvestment relief for a former main home, which is limited to EU and EEA residents.

When do I have to file Modelo 210 after selling?

Within three months after the end of the buyer’s one month period to pay the 3%, so about four months after completion, whether you owe tax or are due a refund.

Who pays the plusvalía when the seller is a non-resident?

The tax is the seller’s, but the law makes the buyer liable as substitute. The buyer usually keeps back the estimated amount from the price and pays the town hall within 30 working days.

Can I sell my property in Spain without travelling?

Yes, with a power of attorney signed before a notary in your country with the Hague Apostille, or at a Spanish consulate. It must cover the sale, receiving the price, cancelling any mortgage and the tax returns.

Can I avoid capital gains tax by buying another home?

Only if you live in the EU or an EEA country with tax information exchange, the property sold was your main home and you reinvest the proceeds in a new main home within two years.

Selling with Peralta Rojas Abogados

Peralta Rojas Abogados was founded in 2017 by David Peralta Rojas, formerly of Garrigues and a member of the Seville Bar (ICAS no. 15174). We act for sellers throughout Spain, in English and Spanish, with meetings in Seville, in Marbella and Cádiz by appointment, and by video call; if you cannot travel, you can sign by power of attorney.

In a first meeting we review your deeds, purchase costs and improvements, your tax residence, any mortgage or tenancy, and the likely capital gains tax and plusvalía, so you know your net figure before accepting an offer. We then give you a written quote for the work.