Capital Gains Tax on Property Sale in Spain for Non-Residents
Selling Spanish property as a non-resident triggers a 19% capital gains tax, a mandatory 3% buyer retention, and a separate municipal plusvalía tax. Missing the Modelo 210 filing deadline is one of the most common — and costly — mistakes foreign sellers make.
19%
flat capital gains rate for all non-residents since 2016
3%
mandatory buyer retention on the sale price (Modelo 211)
4 months
deadline to file Modelo 210 after completion
Separate
plusvalía municipal tax also applies, regardless of residency
How the sale is taxed, step by step
1. Buyer withholds 3% at completion
Under art. 25.2 Ley IRNR, the buyer withholds 3% of the sale price and pays it to the Agencia Tributaria via Modelo 211 within one month of completion — this happens regardless of what the actual gain turns out to be.
2. Seller calculates the real gain
The taxable gain is transfer value minus acquisition value, with documented acquisition costs (notary, registry, ITP/AJD paid on purchase) and capital improvements deductible from the acquisition value.
3. Seller files Modelo 210 within 4 months
The 19% tax is calculated on the real gain. If it's less than the 3% already withheld, the seller claims a refund of the difference; if more, the seller pays the balance.
4. Plusvalía municipal is filed separately
This town-hall tax on land value increase is independent of the state capital gains tax and must be settled with the local council, typically within 30 days of the sale, following the post-2021 calculation reform.
Frequently asked questions
What tax rate applies to capital gains from selling property in Spain as a non-resident?
Non-residents pay 19% on the capital gain under the Non-Resident Income Tax Law (Ley IRNR, Real Decreto Legislativo 5/2004), for both EU/EEA and non-EU/EEA sellers — the rate was equalized at 19% for all non-residents since 2016. The gain is the difference between the transfer value (sale price minus selling costs) and the acquisition value (purchase price plus acquisition costs and improvement costs, adjusted where applicable).
What is the 3% retention and who withholds it?
Under article 25.2 of the Ley IRNR, the buyer is legally obliged to withhold 3% of the agreed sale price and pay it directly to the Spanish Tax Agency (Agencia Tributaria) using Modelo 211, within one month of the completion date. This retention acts as a payment on account of the seller's capital gains tax liability, ensuring non-resident sellers cannot leave Spain without settling tax due.
How does the seller reclaim the difference between the 3% retention and the actual tax due?
The seller must file Modelo 210 within 4 months of the sale, declaring the actual capital gain and the 19% tax due. If the 3% retention exceeds the tax owed (common when the property has been held long-term with a modest gain, or sold at a loss), the seller can claim a refund of the excess. If the 3% retention is less than the tax due, the seller must pay the difference. Refunds from the Agencia Tributaria typically take several months to process.
What is plusvalía municipal and does it apply to non-resident sellers too?
Plusvalía municipal (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana, IIVTNU) is a separate municipal tax on the increase in the land value (not the building) since the previous transfer, charged by the town hall where the property is located regardless of the seller's residency status. Following the Constitutional Court ruling (STC 182/2021) and the subsequent Real Decreto-ley 26/2021, the tax now offers a choice between the traditional objective method and an alternative calculation based on the actual gain, with no charge if there was no real increase in value. Non-resident sellers are liable for this tax exactly as resident sellers are.
Are there any deductions or exemptions available to non-resident sellers?
Non-residents can deduct documented acquisition costs (notary, registry, transfer tax paid on purchase, agency fees) and the cost of capital improvements (not routine maintenance) from the acquisition value, reducing the taxable gain. Unlike Spanish tax residents over 65 selling their main home, non-residents do not benefit from the habitual residence exemption, since by definition their Spanish property cannot be their fiscal main residence if they are non-resident. EU/EEA residents may in specific circumstances invoke EU free-movement-of-capital case law to challenge discriminatory treatment, but the base 19% rate itself already applies equally to EU and non-EU sellers since 2016.
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