Selling a property in Spain: what do you actually keep?
A non-resident sees a smaller cheque on the day than the arithmetic suggests, because two of these are withheld at completion.
The gain, and what reduces it
The taxable gain is what you sold for, less selling costs, less what you paid, less the costs of buying and any capital improvements you can document.
If you have let the property, the amortisation you deducted over the years is added back to the gain. Claiming it while letting is still worth it, but the benefit is deferred rather than free.
A resident is taxed on the savings-income scale, in bands. A non-resident pays a single flat rate whatever the size of the gain.
| Slice of the gain | Rate |
|---|---|
| up to €6,000 | 19% |
| €6,000 to €50,000 | 21% |
| €50,000 to €200,000 | 23% |
| €200,000 to €300,000 | 27% |
| over €300,000 | 30% |
| Non-resident, any gain | 19% |
Resident scale applied marginally, each band taxing its own slice. Other savings income can push you into a higher band. The non-resident rate is flat and is not the 24% rental rate.
The 3% retention, and why the cheque looks short
When the seller is a non-resident the buyer must withhold 3% of the price and pay it to the Treasury on Modelo 211. It is an advance on your capital gains tax, not an addition to it.
The retention is 3% of the sale price, not of the gain, which is why it can easily exceed the tax actually due.
You then file and reconcile. If the 3% is more than the tax due, including when you sold at a loss, you claim a refund. If it is less, you pay the difference.
Plusvalia municipal
A separate town-hall tax on the increase in the land value over your holding period. Since the 2021 reform there are two ways to compute it and you may use the lower.
If the land did not increase in value at all, it is not due. That has to be argued with evidence rather than assumed.
When the seller is a non-resident, the buyer is the substitute taxpayer, so this is usually retained at completion too.
Reliefs a resident may have
Reinvesting in a new main residence can exempt the gain in proportion. Sellers over 65 disposing of their main residence may be exempt entirely. Property bought before 1995 may carry a partial abatement, capped across all your disposals.
These attach to residents and to main residences, so an investment flat held by a non-resident generally sees none of them.
Common questions
- Do I pay tax if I sell at a loss?
- No capital gains tax on a loss. But a non-resident still has 3% withheld and has to file to reclaim it; it is not returned automatically.
- How long does the 3% refund take?
- Months rather than weeks, and only once you have filed. Treat it as working capital you will not see for a while.
- Can I deduct the kitchen I replaced?
- Improvements that add value or extend the life of the property, yes, with invoices. Routine repairs and redecoration, no.
- Is plusvalia always payable?
- Not if there was no real increase in the land value. Both computation methods exist and you are entitled to the lower.
Estimate for orientation only - not tax, legal or financial advice. Figures are computed from versioned, dated reference rates and may be incomplete or out of date. Confirm with your gestor / asesor fiscal.