Selling Spanish property as a non-resident is a tax event with three moving parts: the 3% retention the buyer is required to withhold and pay to Hacienda, the capital gains tax (CGT) filed on Modelo 210 within four months of the sale, and the municipal plusvalía assessed by the local town hall. Get any of them wrong and either the sale stalls or you overpay by thousands. This is the working guide we use with non-resident clients selling Costa del Sol property in 2025.
The 19% / 24% rate split
Capital gains realised on the sale of Spanish-located property by a non-resident are taxed under the Non-Resident Income Tax Act (IRNR):
- EU / EEA non-residents — 19% flat rate on the net gain.
- Non-EU non-residents (including the UK after Brexit) — 24% flat rate on the net gain.
There is no progressive scale, no allowance, no annual exempt amount. The regime is simpler than residents’ progressive scale (also 19–28%) but the non-EU 24% rate is meaningfully harsher than the resident regime.
How “the gain” is calculated
The taxable gain is sale value minus acquisition value, both adjusted:
Sale value = sale price actually received, minus:
- Estate agent commission paid to the seller’s broker
- Plusvalía municipal paid by the seller (if borne by seller)
- Energy Performance Certificate cost
- Any other documented sale expenses
Acquisition value = original purchase price, plus:
- Transfer tax (ITP, AJD) paid at acquisition — typically 6–10% of price
- Notary, registry, agent fees at acquisition
- Documented improvements (not maintenance) — kitchen renovation yes, repainting no
- Annual depreciation taken if the property was rented out (this REDUCES acquisition cost)
Worked example. Bought 2010 for €400,000. ITP + notary + registry + agent: €36,000. New kitchen 2015: €18,000. Sold 2025 for €620,000. Agent commission and plusvalía: €25,000.
- Sale value = 620,000 − 25,000 = €595,000
- Acquisition value = 400,000 + 36,000 + 18,000 = €454,000
- Net gain = 595,000 − 454,000 = €141,000
- CGT (EU non-resident, 19%) = €26,790
- CGT (non-EU non-resident, 24%) = €33,840
The €18,000 in improvements is what most non-residents miss. Receipts for any work over €1,000 should be kept for the entire holding period.
The 3% retention — Modelo 211
Spanish law makes the buyer of property from a non-resident jointly liable for the seller’s CGT, so it imposes a 3% retention on the sale price. The buyer files Modelo 211 within one month of completion, paying the 3% to Hacienda. You receive €620,000 minus the 3% = €601,400 at closing.
Two important points:
- The 3% retention is an advance, not a final tax. It is credited against your CGT liability when you file Modelo 210.
- If your actual CGT liability is less than the 3% retention, you get a refund. This is common for properties bought before the 2008 crash that didn’t recover much, or that benefit from large documented improvements.
In our example above:
- 3% retention: 620,000 × 3% = €18,600
- CGT liability (EU): €26,790
- Additional payable on Modelo 210: €8,190
If instead the gain were small (€50,000):
- CGT liability (EU): €9,500
- 3% retention: €18,600
- Refund due: €9,100 (request via Modelo 210)
Plusvalía municipal — the second tax
The Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU), commonly called plusvalía municipal, is a separate tax levied by the local town hall on the increase in land value (not building value) during the holding period.
The 2021 Constitutional Court ruling overturned the old fixed-coefficient method as unconstitutional. Sellers can now choose between:
- Objective method: cadastral value × council coefficient based on holding period.
- Real-gain method: the actual increase in cadastral land value between purchase and sale, multiplied by the seller’s ownership share, taxed at the council rate (typically 25–30%).
The taxpayer chooses whichever method gives a lower bill. If there is no real gain (selling at a loss in land terms), no plusvalía is due — but you still must file the declaration.
The seller pays plusvalía. Filing window varies by municipality, typically 30 days from the notarial completion. In Marbella the rate is on the moderate end; in Madrid and Barcelona it can be material.
Deadlines — diary these
| Filing | Deadline | Who files |
|---|---|---|
| Modelo 211 (3% retention) | 1 month from sale completion | Buyer |
| Modelo 210 (CGT) | 4 months from sale completion | Seller (non-resident) |
| Plusvalía municipal | 30 days from sale (varies by municipality) | Seller |
If you miss Modelo 210, late-filing surcharges run from 1% (within 3 months) to 15% (more than 12 months), plus interest. The deadline is firm — file even if your final calculation isn’t done; you can amend.
Treaty interactions
Most countries with significant Spanish-property-owning populations have double-tax treaties with Spain that grant Spain primary taxing rights on Spanish property gains, with the home country crediting Spanish tax against any home-country liability:
- UK — UK-Spain DTA: Spain primary, UK credits.
- Germany — DE-ES DTA: Spain primary, Germany credits.
- France — FR-ES DTA: Spain primary, France credits.
- United States — US-Spain DTA: Spain primary, US credits via the foreign tax credit.
In practice, the Spanish tax is usually the higher tax in the chain, so the home country credits the entire Spanish payment and there is no additional home-country tax on the gain. But always verify with a home-country tax adviser before the sale.
Refund timeline
Refund claims via Modelo 210 typically take 6–12 months to process. Hacienda may request supporting documents (improvement invoices, completion deeds) — respond within the 10-day window or the file lapses. Refunds are paid by transfer to a Spanish bank account or, with extra paperwork, an EU SEPA account.
Common ways non-residents overpay
- Forgetting improvements. Bath remodel, garage build, pool installation — all reduce gain. Reconstruct from old bank statements if needed.
- Forgetting transfer tax (ITP) at acquisition. Adds 6–10% to acquisition basis. Pull the original purchase deed.
- Using property’s market valuation, not actual sale value, for sale price. Hacienda values from the deed; market opinions don’t enter the calculation.
- Filing only Modelo 210 and ignoring plusvalía. They’re separate. Town hall sends a tax bill 6–12 months after.
- Not requesting refund within 4 years. Refund claims expire — file Modelo 210 even if no additional tax is due, just to start the refund clock.
If you are listing a Spanish property within the next 12 months and want a clean handover from broker through to refund processing, book a free consultation. We coordinate with your selling agent and home-country tax adviser so the sale closes with the tax position already mapped out, not figured out afterwards.
