When a non-resident sells a property in Spain, the buyer must withhold 3% of the price and pay it to the Spanish Tax Agency (Agencia Tributaria) with Form 211 (modelo 211) within one month. The seller then declares the gain with Form 210 (modelo 210), which is taxed at 19%, and the withholding is deducted from what they have to pay or refunded if there is any left over. In addition, the municipal capital gains tax (plusvalía municipal) is paid in by the buyer on the seller’s behalf. We explain each step.

What taxes a non-resident pays when selling a property in Spain

If you are not tax resident in Spain and you sell a home, commercial premises or a plot of land located here, the transaction has consequences for two taxes:

  • Non-resident income tax (Impuesto sobre la Renta de no Residentes, IRNR), on the gain you make: the difference between what you are paid and what it cost you. It is paid in advance through the 3% withholding and settled with Form 210.
  • The tax on the increase in value of urban land (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana), better known as plusvalía municipal, which is charged by the town hall where the property is located.

What matters is your tax residence, not your nationality: a Spaniard who lives and pays tax in another country sells as a non-resident, and a foreigner resident in Spain sells like any other personal income tax (IRPF) taxpayer.

The 3% withholding: what it is and who pays it in (Form 211)

As the Tax Agency cannot be sure of collecting from someone who lives abroad, the law shifts part of the responsibility to the buyer. Under art. 25.2 of the Non-Resident Income Tax Act (Ley del IRNR), anyone who buys a property from a non-resident without a permanent establishment is obliged to withhold 3% of the agreed consideration and pay it to the Spanish Treasury.

  • It is filed by the buyer, with Form 211, within one month of the date of the transfer.
  • In practice, that 3% is deducted from the price at the notary’s office: the seller receives 97% and the buyer pays in the rest.
  • The buyer must give the seller a copy of Form 211, because the seller will need it for their own return.
  • If the buyer does not withhold, the property itself is charged with the payment, so the problem ends up reaching the buyer too.

The withholding is not the final tax but a payment on account. It applies even if you sell at a loss.

How the gain is taxed: Form 210 at 19%

The non-resident seller declares the transaction with Form 210. According to the Tax Agency, the deadline is three months from the end of the one-month period the buyer has to pay in the withholding. You will find the details of the form on our page about Form 210 for non-residents.

How the gain is calculated

The gain is the difference between the transfer value and the acquisition value:

  • Acquisition value: the price you paid, plus investments and improvements (not repairs or maintenance), plus the costs and taxes of the purchase (notary, registry, transfer tax (ITP) or VAT (IVA), gestoría or administrative agent). If you inherited the property or received it as a gift, the value declared for inheritance or gift tax. Depreciation is subtracted if you rented it out.
  • Transfer value: the sale price minus the costs and taxes you pay as the seller, for example the estate agent’s commission or plusvalía municipal.

The 19% rate is applied to that gain. The 3% withholding already paid in is subtracted from the result. If the property was bought before 1995, a transitional regime may apply that reduces part of the gain; it is best to have a professional calculate it.

If you sell at a loss or the withholding exceeds the tax

It is common for 3% of the price to be more than the tax due, especially if the gain is small or there is a loss. In that case, Form 210 is used to claim a refund of the excess. Bear in mind that under IRNR each transaction is taxed separately: in general, a loss cannot be offset against gains from other transactions.

Reinvestment in a main home

If you are resident in another State of the European Union or of the European Economic Area with exchange of tax information and what you are selling was your main home (vivienda habitual), you can leave out of the tax the gain you reinvest in a new main home, in proportion to the amount reinvested. This is an unusual case among non-residents, because it requires the house in Spain to have been your main home.

Plusvalía municipal is paid by the buyer (and deducted from your price)

Normally plusvalía municipal is paid by the seller. But art. 106.2 of the Local Tax Authorities Act (Ley Reguladora de las Haciendas Locales) establishes that, when the seller is a non-resident individual, the buyer is the substitute taxpayer: it is the buyer who declares it and pays it to the town hall.

The tax is still the seller’s, so the buyer can demand the amount from them. Usually it is calculated before signing and withheld from the price along with the 3%. Each town hall sets its own deadlines and coefficients, so the figure changes depending on the municipality and how many years you have owned the property.

Double taxation treaties and the certificate of residence

The treaties Spain has signed with other countries follow, in general, the rule of the OECD model: the gain on selling a property may be taxed in the country where the property is located. That is why you pay tax in Spain even though you live abroad. Your country of residence may then tax it again, but it will have to avoid double taxation, normally with a credit for the tax paid here.

To prove that you are resident in another country, and for your country to recognise what was paid in Spain, you use the certificate of tax residence issued by your country’s tax authority. Each treaty has its nuances; you can look them up on our page about the double taxation treaty.

Timeline and documents for the sale

  1. Before signing: have your NIE (foreigner’s identification number), check that you are up to date with the annual Form 210 for the property (for imputed income or for rent) and ask for an estimate of the gain and of the plusvalía.
  2. At the notary’s office: the buyer withholds 3% of the price (and, if agreed, the amount of the plusvalía).
  3. Within the following month: the buyer files Form 211 and gives you a copy.
  4. Within the municipal deadline: the buyer declares the plusvalía to the town hall.
  5. In the three months following that first month: you file Form 210 and pay the difference or claim the refund.
  6. In your country: you declare the sale under its rules, with the certificate of residence and proof of what was paid in Spain.

When it is worth having an adviser

The sale looks simple, but mistakes are expensive: a wrongly calculated acquisition value, costs that are not deducted, a refund that is not claimed or a plusvalía that the buyer over-withholds. If you are going to sell or have just done so, you can tell an adviser who specialises in non-resident tax about your case or read our guide to property tax: we’ll put you in touch with a professional who will check the numbers before the deadlines expire.

Frequently asked questions

Can the buyer skip the 3% withholding?

No: if the seller is a non-resident, the withholding is compulsory. If the buyer does not make it, the property is charged with the payment, so it is in the buyer’s interest too.

Do I need an NIE to sell a home in Spain if I live abroad?

Yes. The notary asks for it for the title deed (escritura) and it is needed to file Form 210 and to receive any refund.

Do I have to pay again in my country of residence?

It depends on your country’s rules and on its treaty with Spain. In general, your country may tax the gain, but it must take into account what you already paid here to avoid double taxation.

Can I sell through a representative without coming to Spain?

Yes, with a power of attorney granted before a notary or at a Spanish consulate, legalised or apostilled depending on the country. A tax representative can also file Form 210 on your behalf.