Selling Property in Spain in 2026: The Complete Tax Guide for Non-Resident Sellers
Capital Gains Tax, Plusvalía, the 3% retention, and how to legally bring your tax bill down — explained in plain English.
Selling a property in Spain triggers two separate taxes — one national, one municipal. Both are calculated differently, and both can catch sellers off guard.
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⏰ 9 min read
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By Tharros Brokers
Selling property Spain-wide comes with two tax bills most non-resident sellers don’t see coming until completion day: a national Capital Gains Tax and a municipal Plusvalía tax. This guide breaks down exactly what you’ll owe, who withholds what, and how sellers legally bring their real tax cost down — whether you’re cashing out, downsizing, or using the proceeds to buy your next Spanish property.
Selling Property Spain: Capital Gains Tax Explained
Capital Gains Tax (CGT) is paid to the Spanish Tax Office (Agencia Tributaria) on the profit you make from the sale — not on the sale price itself. Profit is calculated as the difference between what you paid for the property originally and what you sold it for, minus qualifying improvement costs and the expenses you incurred on the original purchase.
| Seller residency | CGT rate on profit |
|---|---|
| EU / EEA resident | 19% |
| Rest of world (UK, US, Canada, etc.) | 24% |
The 3% retention non-resident sellers always run into
If you’re a non-resident selling a Spanish property, the buyer is legally required to withhold 3% of the sale price at completion and pay it directly to the Spanish Tax Office on your behalf. This isn’t an extra tax — it’s a deposit against whatever CGT you actually owe.
What happens to the 3% depends on your outcome:
- Sold at a loss or broke even → you’re entitled to a full or partial refund of the 3% withheld.
- Sold at a profit → the 3% counts toward your CGT bill; you settle any balance owed (or claim back any excess).
Here’s the part most sellers don’t realise: a lawyer who properly offsets your original purchase costs, improvement invoices, and selling expenses against the sale price can bring the effective CGT down to roughly 7–10% of the profit in many cases — well below the headline 19–24% rate. This requires documentation (keep your original purchase deed, notary fees, and renovation invoices), and it’s a technical calculation that’s worth getting a specialist to run rather than leaving on the table.
Selling Property Spain: Plusvalía Municipal Tax
The second tax bill lands from the town hall, not the national government. Plusvalía Municipal is charged on the increase in the official land value (not the building) since the property last changed hands, and every town hall applies its own sliding scale — so the same sale can produce very different Plusvalía bills in Marbella versus Valencia versus Alicante.
Because some town halls are slow to issue the invoice — sometimes over a year after completion — buyers routinely withhold part of the sale price at completion to cover it. If a seller walks away without settling Plusvalía, liability doesn’t disappear: it transfers to whoever owns the property next.
⚠ The rule that catches buyers out: in Spain, unpaid debts, arrears, and even ongoing court proceedings attach to the property, not the person who owed them. Whoever buys next can inherit a seller’s unpaid Plusvalía, community fees, or utility arrears. A conveyancing lawyer runs due diligence on the title specifically to catch this before completion — notaries and banks only confirm paperwork is in order, they don’t investigate the property’s financial history.
Selling Property Spain: The Tax Timeline Step by Step
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Pro Tips for Reducing Your Tax Bill When Selling
- Keep every purchase-related invoice — notary fees, registry fees, ITP/VAT paid on the original purchase, and agency fees all offset your taxable profit.
- Keep renovation and improvement invoices with valid Spanish VAT (IVA) numbers — routine maintenance doesn’t count, but structural improvements typically do.
- Get a lawyer to run the CGT calculation before you agree a sale price, not after — it affects what you actually walk away with.
- If you sold at a loss or broke even, don’t assume the 3% retention is gone — most eligible sellers never claim it back simply because nobody told them they could.
- Ask your conveyancer to confirm Plusvalía and community fees are settled in writing before completion funds are released — not just “in progress.”
Frequently Asked Questions
For official guidance on property taxation in Spain, see the Spanish Tax Agency (Agencia Tributaria).
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