How much capital gains tax do non-residents pay in Spain?
A flat 19% of the gain, for residents of the EU and non-EU countries alike. The gain is the sale price less selling costs, less the original purchase price and its associated costs — transfer tax or IVA, notary, registry and legal fees — and less capital improvements evidenced by invoices. The buyer retains 3% of the sale price and pays it to the Agencia Tributaria as an advance; if the real liability is lower, or the sale produced a loss, the balance is reclaimed on Modelo 210 within four months.
- 19% applies regardless of how long you have owned the property.
- The 3% retention is the buyer's legal obligation, not optional.
- Plusvalía municipal is a separate, additional tax on the land value.
Key takeaways
- Non-resident CGT is a flat 19% of the gain, EU and non-EU alike.
- Purchase taxes, notary, registry, legal and agency fees, and evidenced improvements reduce the gain.
- The buyer must retain 3% of the price and pay it on Modelo 211 within one month.
- Overpayments are reclaimed on Modelo 210 within four months of the sale.
- Plusvalía municipal is a separate town hall tax on the land value increase.
- Since 2021 you can elect the real-gain method for plusvalía and pay nothing on a loss.
Calculating the gain
| Item | Treatment | Example |
|---|---|---|
| Sale price | Starting figure | €520,000 |
| Selling costs (agency, legal, plusvalía) | Deducted | −€15,000 |
| Original purchase price | Deducted | −€400,000 |
| Purchase costs (ITP/IVA, notary, registry, legal) | Deducted | −€40,000 |
| Capital improvements with invoices | Deducted | −€0 |
| Taxable gain | 19% | €65,000 → €12,350 tax |
In this example the buyer retains €15,600 (3% of €520,000), so €3,250 is reclaimable. Note that maintenance and redecoration are not improvements — only works that add to the property, such as an extension, pool or full renovation, qualify, and only with proper Spanish invoices.
The 3% retention and how to reclaim it
Where the seller is a non-resident, the buyer is legally required to hold back 3% of the purchase price at the notary and pay it to the Agencia Tributaria on Modelo 211 within one month. The buyer gives you the stamped Modelo 211 as proof — without it you cannot make the reclaim.
If your actual liability is below the retention, file Modelo 210 within four months of the sale to reclaim the balance. Refunds are paid to a Spanish bank account, so keep your account open until the refund lands; the Agencia Tributaria has six months to pay before interest starts to run, and refunds commonly take longer than that in practice.
Plusvalía municipal by region
Plusvalía is charged by the town hall on the increase in the value of the land — not the building — between acquisition and sale. Since the 2021 reform you may choose whichever is lower of the objective formula (based on cadastral land value and years held) and the real gain method, and nothing is due where you can evidence that the land did not increase in value. It is normally paid by the seller within 30 working days of the notarial deed.
| Region / city | Typical municipal rate | Indicative cost, €500k sale held 10 years |
|---|---|---|
| Madrid | Up to 29% of the assessed land increase | €3,000 – €7,000 |
| Barcelona | Up to 30% | €4,000 – €9,000 |
| Malaga / Marbella | 25% – 30% | €2,500 – €6,500 |
| Balearics (Palma, Ibiza) | Up to 30% | €3,000 – €8,000 |
| Valencia / Alicante | 25% – 30% | €2,000 – €5,500 |
| Canary Islands | 20% – 30% | €1,500 – €5,000 |
Ranges are indicative: the actual figure depends on the cadastral land value and the municipality's own coefficients, so always ask the town hall or your lawyer for a calculation before agreeing a net sale figure.
When the tax has to be funded before the sale
Where a tax charge, an inheritance settlement or an onward purchase has to be dealt with before a Spanish sale completes, bridging finance in Spain or equity release are the routes our specialist partners see most often. Both are secured on the property and repaid from the sale proceeds. See also the inheritance tax guide where the sale follows a death.
Related guides
Frequently asked
Questions from readers
How much capital gains tax do non-residents pay in Spain?
A flat 19% of the gain, for both EU and non-EU sellers. The gain is calculated after deducting the purchase price, purchase taxes and fees, evidenced capital improvements and the costs of sale.
What is the 3% retention on a Spanish property sale?
Where the seller is a non-resident, the buyer must retain 3% of the purchase price and pay it to the Agencia Tributaria on Modelo 211 within one month, as an advance against the seller's capital gains tax. Any overpayment is reclaimed on Modelo 210.
How do I reclaim the 3% retention?
File Modelo 210 within four months of the sale, declaring the gain and crediting the retention shown on the buyer's stamped Modelo 211. Refunds are paid only to a Spanish bank account, so keep yours open until the money arrives.
What costs can I deduct from a Spanish capital gain?
Transfer tax or IVA paid on purchase, notary, Land Registry and legal fees on both purchase and sale, estate agency commission, plusvalía municipal, and capital improvements supported by Spanish invoices. Routine maintenance and redecoration do not qualify.
Is there any capital gains relief for older sellers or main homes?
The main-home rollover relief and the over-65 exemption are available to Spanish tax residents, not to non-residents. EU/EEA non-residents selling what was genuinely their main home can in limited circumstances claim rollover relief on reinvestment in another EU main home.
What is plusvalía municipal and who pays it?
A town hall tax on the increase in land value between acquisition and sale, normally paid by the seller within 30 working days of the notarial deed. Since 2021 you can choose the lower of the objective formula and the real gain, and no tax is due where the land did not rise in value.
Do I pay capital gains tax again in my home country?
You declare the gain in Spain first, then usually in your country of residence, where the double taxation treaty gives credit for the Spanish tax paid. UK sellers, for example, report the gain to HMRC and offset the 19% already paid in Spain.
What if I sell at a loss?
No capital gains tax is due and the whole 3% retention is reclaimable on Modelo 210 within four months. You can also claim exemption from plusvalía by evidencing that the land value did not increase between the two escrituras.