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Selling property in Spain as a non-resident involves more than finding a buyer. Spanish law has specific tax rules for sellers who are not tax resident in Spain, and several documents must be ready before the notary appointment. Knowing them in advance avoids delays and lets you calculate how much you will actually receive.
The 3% retention
When the seller is non-resident, the buyer must withhold 3% of the purchase price and pay it to the Spanish tax authorities (form 211) within one month of the sale. This is not an additional tax: it is a payment on account of the seller’s capital gains tax.
After the sale, the seller files their own capital gains return (form 210):
- If the tax due is less than the 3% retained, the seller can claim a refund of the difference.
- If the tax due is more, the seller must pay the balance.
Refund claims can take several months, so it is important to file correctly and promptly.
Capital gains tax
Non-residents pay capital gains tax at 19% on the gain obtained. The gain is calculated as:
- Sale price, minus selling costs (agent’s fee, legal fees).
- Minus the acquisition price, plus purchase costs and taxes paid.
- Minus documented improvement works.
Keeping invoices of works and purchase expenses reduces the taxable gain. Some exemptions, such as reinvestment in a main home, are available to EU/EEA residents under certain conditions.
Municipal plusvalía
The *plusvalía municipal* (tax on the increase in urban land value) is charged by the town hall where the property is located. It is legally payable by the seller. Since 2021 the law allows the taxpayer to choose the more favourable calculation method, and no tax is due if there is no real gain in land value. The buyer may withhold the amount from the price if agreed, to ensure payment.
Documents you need to sell
- Title deed and NIE.
- Latest IBI receipt.
- Energy performance certificate (mandatory for sale).
- Habitation certificate, where applicable.
- Community of owners certificate of no debts.
- Utility bills.
- Evidence of purchase costs and improvement works for the tax calculation.
- Holiday rental licence documents, if the property has one.
Other points for non-resident sellers
- Annual non-resident tax: make sure previous years’ returns are filed; outstanding obligations can create problems.
- Mortgage: if the property is mortgaged, the loan must be cancelled at completion. Coordinate with the bank early.
- Power of attorney: you can sell without travelling to Spain by granting a power of attorney.
- Bringing money home: consider currency exchange and your home country’s tax on the gain, and whether a double taxation treaty applies.
Our team for non-resident taxes prepares the tax calculations, while our tax lawyers coordinate with advisers in your country of residence.
Timing the sale
Plan at least two to three months for a non-resident sale. Obtaining missing certificates, cancelling a mortgage with a foreign bank or completing an old inheritance can take longer than finding a buyer. Starting early also allows you to prepare the tax calculation, so there are no surprises when the 3% retention is applied.
Frequently asked questions
Can the 3% retention be avoided?
Not if you are non-resident. If you have become tax resident in Spain, you must prove it with a tax residence certificate.
What if I inherited the property?
The acquisition value will be the value declared in the inheritance. Inheritance procedures must be completed before selling.
Do I pay tax in my home country too?
Possibly. Double taxation treaties generally allow you to credit the Spanish tax paid. Check with your local adviser.
Conclusion
A well-prepared sale is faster and more profitable. With the right documents and a precise tax calculation, you know in advance how much you will receive and when. Castell.law assists non-resident sellers throughout the Balearic Islands, from the contract to the capital gains return.
