Selling a Spanish property while living abroad triggers three things you need to plan for: a 3% retention taken from the sale price by the buyer, 19% capital gains tax on your profit, and a Modelo 210 tax return that settles the final bill. On top of that, the town hall charges a local tax called plusvalía municipal.
Many non-resident sellers are surprised to see 3% of the price withheld at completion, and even more surprised to learn that this is not the final tax. This guide explains how the whole process works, what you owe, when you must file, and how to claim money back if the retention was too high.
Key facts at a glance
Item | What you need to know |
|---|---|
Capital gains tax rate | 19% of the net gain, for all non-resident sellers |
Buyer’s retention | 3% of the agreed price, paid by the buyer to the tax agency with Modelo 211 within one month of the sale |
Your tax return | Modelo 210 (capital gains), due three months after the buyer’s one-month period ends, so about four months after the sale |
Refund | If the 3% is more than the tax due, or you sold at a loss, you claim the difference in your Modelo 210 |
Local tax | Plusvalía municipal, paid to the town hall |
Do non-residents pay tax when they sell property in Spain?
Yes. Spain taxes the profit from selling real estate located in Spain, even if you live in another country. For non-residents this falls under the Non-Resident Income Tax (IRNR), and the gain is declared on Modelo 210, the same form family used for annual imputed income and rental income.
The tax applies to the gain, not to the whole sale price. If you sell for less than you paid, there is no capital gains tax to pay and you can reclaim the 3% retention.
How much capital gains tax do non-residents pay? (19%, not 24%)
The capital gains tax rate for non-residents selling property is 19% on the net gain. According to the Spanish Tax Agency (AEAT), this is the rate for gains arising from the transfer of an asset.
You may read on other websites that sellers from outside the EU pay 24%. That is a common mix-up. The 19% / 24% split between EU/EEA residents and everyone else applies to other kinds of income, such as rental income. Gains on selling property are taxed at 19% for all non-resident individuals, whether you live in Sweden, the UK, the US or anywhere else.
Two practical points:
Double taxation treaties: Spain normally keeps the right to tax gains on Spanish property. Your home country will usually credit the Spanish tax against your home tax bill, but the rules differ, so check with an adviser where you live.
Spanish rules apply to the calculation: The gain is calculated using the same rules as for Spanish residents, so documented costs reduce your taxable profit.
How the taxable gain is calculated
The basic formula is:
Gain = transfer value − acquisition value
To reduce the gain, you can include:
Acquisition costs: the taxes you paid when you bought (transfer tax or VAT and stamp duty), notary and land registry fees, and legal fees
Improvements: documented renovation work, not routine maintenance
Selling costs: estate agent commission and other expenses and taxes paid by you as the seller
Keep every invoice and deed. If a property was bought a very long time ago, special reduction coefficients may apply, so ask an adviser if you bought before the mid-1990s.
Worked example (illustrative figures only)
Amount | |
|---|---|
Purchase price (2018) | €250,000 |
Purchase taxes, notary, registry and legal fees | €25,000 |
Documented improvements | €10,000 |
Acquisition value | €285,000 |
Sale price (2026) | €340,000 |
Selling costs (agent and other expenses) | €10,000 |
Net transfer value | €330,000 |
Taxable gain | €45,000 |
Capital gains tax at 19% | €8,550 |
3% retention paid by the buyer (3% × €340,000) | €10,200 |
Refund due to the seller | €1,650 |
In this example the retention was higher than the tax, so the seller claims €1,650 back in the Modelo 210. If the gain were larger, the seller would pay the difference instead.
The 3% retention and Modelo 211
When a non-resident sells Spanish property, the buyer must withhold 3% of the agreed price and pay it to the tax agency using Modelo 211 within one month of the transfer date. This is the buyer’s legal obligation, not an option.
The retention is not your final tax. It is an advance payment against your capital gains tax, held by the state because a non-resident could otherwise take the sale proceeds out of the country without settling the tax.
Two things to remember:
The 3% is calculated on the price, not on your profit, so it can be much more or much less than the tax you actually owe.
Ask the buyer or their lawyer for proof that Modelo 211 was filed. You need it to have the retention credited in your own return.
Modelo 210 for the sale: deadline and how to file
You declare the real gain, subtract the 3% retention already paid, and either pay the balance or request a refund, all in one Modelo 210.
Deadline: the AEAT sets the deadline for property sales at three months after the one-month period that follows the transfer date. In practice, that is roughly four months after the sale.
Example: if the deed is signed on 10 March, the buyer’s Modelo 211 is due by 10 April, and your Modelo 210 is due by 10 July.
Filing late can lead to surcharges, interest and penalties, so it is worth planning ahead rather than waiting for the last day.
How to file: Modelo 210 is submitted online through the AEAT electronic office with an accepted electronic certificate or, for individuals, Cl@ve, or on paper generated from the AEAT form. If a married couple who both are non-residents co-own the property, a single return can be filed for the sale.
Refunds: if the retention exceeds your tax, the refund is requested in the same Modelo 210. Refunds are often reported to take several months, commonly in the range of 6 to 12, so keep that in mind when planning what you will do with the sale proceeds.
What if you sell at a loss?
If the net transfer value is lower than the acquisition value, there is no capital gains tax. You still need to file Modelo 210 to declare the loss and reclaim the full 3% retention. If you do not file, the money stays with the tax agency.
Plusvalía municipal: the local tax
Plusvalía municipal is a municipal tax on the increase in the cadastral value of the land during the time you owned the property. It is separate from your capital gains tax and is paid to the town hall where the property is located.
It is normally linked to the seller, but when the seller is a non-resident, the law generally makes the buyer responsible towards the town hall. In practice, the sale contract should say clearly who bears the cost.
No plusvalía is due if you can show that the property was sold at a loss.
Sellers should check whether they have to reimburse the buyer, so there are no surprises after completion.
Is there any exemption for non-resident sellers?
The main exemption is limited. Residents of another EU or EEA country who sell what was their main home in Spain can have the gain excluded from tax if they reinvest the full proceeds in a new main home. A holiday home or rental property does not normally qualify, and partial reinvestment only excludes a proportional part of the gain.
Checklist before you sell
Get your annual returns in order. Make sure your yearly Modelo 210 returns (imputed income or rental income) are filed up to and including the year of sale. Our Modelo 210 tax calculator and our step-by-step calculation guide help you check what you owe each year.
Collect your documents: the purchase deed, proof of acquisition costs, invoices for improvements, and the sale deed.
Agree the plusvalía with the buyer in the sale contract.
Make sure the buyer files Modelo 211 and gives you proof.
Diarise your Modelo 210 deadline as soon as the date of the deed is fixed.
Plan for the refund delay if the 3% is likely to be higher than your tax.
Common mistakes to avoid
Believing the 3% is the final tax and never filing Modelo 210
Missing the filing deadline and paying avoidable surcharges and interest
Forgetting to include acquisition costs and improvements, which means paying tax on a bigger gain than necessary
Using the 24% rate for the capital gain because of outdated or incorrect online advice
Not obtaining proof of the buyer’s Modelo 211
Leaving earlier years of imputed income unfiled before the sale
Frequently asked questions
How much tax do I pay when I sell my property in Spain as a non-resident? You pay 19% on the net capital gain. The buyer also withholds 3% of the sale price on account, which is credited against that tax.
Do UK or other non-EU residents pay 24% on the sale? No. The 24% rate applies to other kinds of non-resident income. For capital gains on property, the Spanish rate is 19% for non-resident individuals.
When do I have to file Modelo 210 after selling? Three months after the end of the buyer’s one-month period for Modelo 211, which in practice means about four months after the date of the sale.
Can I get the 3% retention back? Yes, to the extent it exceeds the tax you owe, or in full if you sold at a loss. You claim it in your Modelo 210.
Who pays plusvalía municipal when a non-resident sells? The law generally makes the buyer responsible towards the town hall when the seller is a non-resident, but the cost is often agreed between the parties in the contract.
Can spouses who are both non-residents file together? If they co-own the property as a married couple and both are non-residents, a single Modelo 210 can be filed for the sale.
Do I still have to file yearly Modelo 210 returns before I sell? Yes. Owning a property in Spain as a non-resident normally means filing for imputed income or rental income each year until the year of sale.
Sources and official information
This article is general information and not personal tax advice. Rules, rates and deadlines can change and individual situations differ, so confirm your case with the Spanish Tax Agency or a qualified adviser before you sell.