Capital gains tax in Spain for non-residents selling property: 2026 guide

When a non-resident sells property in Spain, the profit is subject to capital gains tax at a flat rate of 19%. This applies regardless of nationality, country of residence or how long the property was owned. What catches many non-resident sellers off guard is not the rate itself — it is the mechanics: the buyer is legally required to withhold 3% of the sale price at completion and pay it to the Spanish tax authority on the seller’s behalf, and the seller then has four months to file a return and settle the balance.

This guide covers everything a non-resident needs to know about capital gains tax in Spain when selling property: how the tax is calculated, what costs reduce the liability, how the 3% retention rule works, how to file Modelo 210, and what Hacienda checks when it reviews the return.

What is capital gains tax in Spain for non-residents?

Capital gains tax for non-residents in Spain falls under the Impuesto sobre la Renta de No Residentes (IRNR). When a non-resident sells a Spanish property, the gain — the difference between the net sale proceeds and the adjusted acquisition cost — is taxed at a flat 19% rate.

This rate applies to all non-residents equally: EU citizens, UK citizens post-Brexit and non-EU nationals all pay the same 19% on property gains in Spain. There is no sliding scale, no length-of-ownership discount and no inflation adjustment for non-residents.

How is capital gains tax on property calculated in Spain?

The taxable gain is not simply the difference between what was paid and what was received. Spain allows certain costs to reduce both sides of the equation, which can significantly lower — or in some cases eliminate — the liability.

The sale side: net sale proceeds

Start with the agreed sale price and deduct the direct costs of selling: estate agent commission and the seller’s legal fees for the transaction. The result is the net sale proceeds.

The acquisition side: adjusted cost

From the net sale proceeds, deduct the adjusted acquisition cost, made up of three elements:

• Original purchase price — the price declared in the original purchase deed (escritura de compraventa)
• Purchase costs — ITP or VAT, notary fees, Land Registry fees and legal fees paid at the time of buying
• Capital improvement works — certain works carried out during ownership, subject to strict conditions below

What costs can non-residents deduct from capital gains tax in Spain?

Improvements vs repairs: the distinction that matters most

This is one of the most litigated areas of Spanish property tax and the source of more disputes with Hacienda than almost any other element of the CGT calculation. The distinction is clear in principle but frequently contested in practice.

Capital improvements — works that increase the value, extend the useful life or materially alter the property — are deductible. Examples include adding a new floor, constructing a swimming pool, installing underfloor heating throughout the property, or fully refitting a kitchen or bathroom as part of a broader renovation. The key test is whether the work added something that was not there before, or fundamentally transformed what was already there.

Repairs and maintenance — works that restore the property to its original condition or keep it functional — are not deductible. Fixing a leak, repainting walls, replacing a broken boiler, renewing flooring like-for-like, or fixing structural damage caused by damp are all likely to be treated as repairs. Replacing a roof is in most cases treated as a repair — it restores the original function rather than creating something new.

In practice, many works fall into a grey area. The Spanish tax authority applies close scrutiny to improvement claims, particularly when a refund is being claimed and the full documentation is reviewed. Claims without invoices, planning permits or technical reports are routinely rejected. The practical advice is to include only works that are clearly capital in nature, properly documented, and where you are prepared to defend the classification if challenged.

Amortisation: the adjustment that catches rental property sellers off guard

If the property was rented out during the period of ownership and amortisation was claimed as a deduction against rental income in annual IRNR filings, those amounts must be subtracted from the acquisition cost when calculating the capital gain on sale.

In practical terms: each year amortisation was claimed as a rental expense, it reduced the tax base for rental income. When the property is sold, the Spanish tax authority requires those reductions to be reversed — the cumulative amortisation claimed across all rental years is deducted from the original acquisition cost, increasing the taxable gain accordingly.

This applies even if the property was only rented out for part of the ownership period. The total amortisation claimed across all rental years is deducted in full when calculating the CGT. If rental filings go back several years, this figure can be material and should be calculated carefully before estimating the final liability.

A worked example

Can non-residents reduce capital gains tax in Spain?

Yes — within the limits of what Spanish law allows. The most effective ways to reduce the CGT liability on a non-resident property sale are to maximise the legitimate acquisition cost: ensuring all purchase costs are included, that any genuine capital improvements are properly documented and claimed, and that no deductible sale costs are overlooked.

What does not reduce the liability for non-residents: there is no principal residence exemption (this applies to residents only), no reinvestment relief, no length-of-ownership discount and no exemption for sellers over 65 — all of these are resident-only reliefs. The only route to a lower CGT bill for a non-resident is a lower gain, achieved through higher legitimate acquisition costs.

It is also worth noting that the plusvalía municipal paid by the seller on the sale is deductible against CGT — it reduces the sale proceeds and therefore the taxable gain. Keep the payment receipt as it must be included in the Modelo 210 calculation.

The 3% retention rule when selling Spanish property as a non-resident

Spanish law requires the buyer to withhold 3% of the agreed sale price at the moment of signing at the notary and pay it directly to the Agencia Tributaria within one month using Modelo 211. The seller receives 97% of the agreed price at completion — the remaining 3% has been paid to Hacienda as an advance against the capital gains tax liability.

The retention is a prepayment, not the final tax. The actual liability is settled when Modelo 210 is filed within four months of the sale. If the 3% exceeds the actual CGT, the seller claims a refund. If it falls short, the balance is due at filing.

How to file Modelo 210 after selling property in Spain

Modelo 210 is the Spanish non-resident income tax return used for capital gains tax on property sales. It must be filed within four months of the completion date. Missing this deadline triggers automatic surcharges.

1. 1
   Gather your documents

   You need the original purchase deed, the sale deed, all invoices for purchase costs and improvement works, the Modelo 211 receipt confirming the 3% was paid, and your NIE number.

2. 2
   Calculate the gain carefully

   Net sale proceeds minus adjusted acquisition cost — remembering to deduct any amortisation previously claimed in rental filings. Use our free CGT calculator for an estimate, or work with an adviser for a precise and defensible figure.

3. 3
   File Modelo 210 electronically

   Submitted through the Agencia Tributaria website. Non-residents without a Spanish digital certificate typically file through a tax representative or gestoría.

4. 4
   Pay any balance — or await the refund review

   If a balance is owed, it is paid at the time of filing. If a refund is claimed, Hacienda reviews the full documentation before authorising payment — typically six to twelve months from the filing date.

What Hacienda reviews when a refund is claimed

When CGT is owed and paid, Hacienda processes the filing without detailed review. When a refund is claimed, Hacienda examines the entire calculation before authorising payment. Inspectors check that the acquisition cost is correctly calculated, that improvement works genuinely qualify as capital improvements rather than repairs, that invoices are properly issued and compliant, and that amounts are consistent with the scale of the work.

Claims that cannot be fully substantiated will be reduced or rejected, which may result in a lower refund or none at all. A conservative calculation that excludes borderline improvement claims is often more prudent than an optimistic one that triggers a detailed audit of the entire return.

What Hacienda checks at the time of the sale

The CGT filing is not the only thing Hacienda reviews when processing a non-resident property sale. At the time of the transaction, the tax authority also checks whether all required annual filings were submitted during the period of ownership.

Non-residents who own Spanish property are required to file an annual imputed income tax return (renta imputada) for every year the property was not rented out, and a wealth tax return (Modelo 714) for any year in which Spanish assets exceeded the applicable threshold. If these filings are outstanding, Hacienda will typically regularise them as part of the sale process — calculating and recovering the tax owed for any missing years, together with interest and late filing surcharges.

For non-residents who have owned a property for many years without filing the required annual returns, this can result in a material additional liability at the point of sale — on top of the CGT itself. Addressing outstanding annual filings before putting the property on the market is significantly less costly than having them raised at completion. Our non-resident tax compliance service covers this regularisation process.

Capital gains tax in Spain for UK residents selling property

Since the UK left the European Union, UK residents are treated as non-EU non-residents for Spanish tax purposes. This does not change the CGT rate — 19% applies to all non-residents regardless of nationality — but it is worth understanding the specific position for UK sellers.

The Spain-UK double taxation treaty remains in force post-Brexit and continues to provide relief against double taxation on the same gain. In practice, this means that CGT paid in Spain on the sale of a Spanish property can typically be offset against any UK Capital Gains Tax liability on the same gain — avoiding being taxed twice on the same profit. The mechanics of claiming this relief depend on your UK tax position and should be confirmed with a UK tax adviser alongside the Spanish filing.

UK sellers should also note that since Brexit, the deductibility of expenses in rental income filings changed — non-EU owners can no longer deduct expenses against rental income in the same way EU/EEA residents can. If rental income was declared on a gross basis in recent years, the amortisation adjustment at the point of sale may differ from what would have applied under the EU rules.

Capital gains tax and the plusvalía municipal

Capital gains tax is not the only tax triggered by a property sale in Spain. Sellers are also liable for plusvalía municipal — a separate local tax charged by the town hall on the increase in the cadastral value of the land during the period of ownership. Plusvalía is calculated using a different method from CGT and is paid to the municipality, not to the national tax authority.

Importantly, the plusvalía municipal paid by the seller is deductible against CGT — it reduces the sale proceeds and therefore the taxable gain. This means keeping the plusvalía payment receipt is essential, as the amount must be included in the Modelo 210 calculation.

Since a 2021 Constitutional Court ruling, sellers can demonstrate that the land value did not increase during their ownership — in which case plusvalía is not due. Where the land did appreciate, sellers now have the option to choose the calculation method that produces the lower result.

Documentation: what to keep and for how long

Whether a balance is owed or a refund is claimed, documentation needs to be in order. Hacienda has four years from the filing deadline to open an audit of a submitted return — documentation relating to a property sale may need to be produced for inspection years after the transaction.

When a balance is owed and paid, Hacienda does not typically review the filing in detail unless it forms part of a broader audit — but documentation should be kept available for four years. When a refund is claimed, the review is virtually certain and documentation must be ready to provide promptly.