If you sell a property as a non-resident, capital gains tax in Spain is charged at 19% on your gain under Non-Resident Income Tax, and the buyer withholds 3% of the price as a payment on account. You then file Form 210 (in practice, up to about four months after completion) to pay the balance or reclaim whatever was over-withheld.
The rules are national, so they apply in exactly the same way to a flat in Málaga, a villa in Marbella or a townhouse in Estepona. Below we explain how the gain is worked out, what the buyer has to do with Form 211, when Form 210 is due and how all of this differs from the municipal plusvalía.
Capital gains tax in Spain for non-residents: how much do you pay?
The rate is 19% on the gain, whichever country you live in. The Non-Resident Income Tax Act sets a general rate of 24% for other types of income, cut to 19% for EU and EEA residents. Article 25.1.f, however, taxes capital gains at 19% for all non-residents. So a seller living in the UK still pays 19% after Brexit, exactly like a German, a Swede or an American.
Neither these rates nor the 3% retention have changed for 2026.
For comparison, if you were tax resident in Spain the gain would go into the savings base of personal income tax (IRPF). The scale published by the Spanish Tax Agency (AEAT) for IRPF 2025 runs from 19% (up to €6,000) to 30% (above €300,000). This article, however, deals only with non-resident sellers.
If your home country also taxes the sale, double taxation treaties come into play. As a rule, the country where the property is located has the right to tax the gain, but it is worth checking your own country's treaty with an adviser.
How is capital gains tax on property in Spain calculated?
The gain is the sale value minus the purchase value, once both have been adjusted:
- Add to the purchase price the costs and taxes you paid when buying (notary, Land Registry, fees) plus any improvements. Repairs and upkeep don't count.
- Mortgage interest cannot be added.
- If the property was let, depreciation is deducted from the purchase value, subject to the minimum set by law.
- Costs and taxes paid by the seller are deducted from the sale price.
- Inflation indexation coefficients no longer apply to sales made since 1 January 2015.
If you bought before 31 December 1994, a transitional regime reduces the part of the gain built up to 20 January 2006, subject to limits. The calculation is fiddly and should be done by your tax adviser.
Three examples: pay more, get some back or get it all back
Take a home bought for €250,000 plus €25,000 in purchase costs and taxes, giving a purchase value of €275,000. It sells for €400,000 with €10,000 of selling costs. The gain is €400,000 − €10,000 − €275,000 = €115,000, and 19% of that is €21,850. The buyer has already withheld €12,000 (3% of €400,000), so €9,850 is left to pay with Form 210.
| Item | Example A | Example B | Example C |
|---|---|---|---|
| Sale price | €400,000 | €400,000 | €400,000 |
| Gain | €115,000 | €40,000 | Loss |
| Tax (19%) | €21,850 | €7,600 | €0 |
| Withheld by the buyer (3%) | €12,000 | €12,000 | €12,000 |
| Form 210 outcome | €9,850 to pay | €4,400 refund | €12,000 refund |
Example C is the one people forget. Sell at a loss and you owe nothing, but the €12,000 withheld only comes back if you file Form 210.
The 3% retention and Form 211: the buyer's side
When the seller is non-resident, the buyer must withhold 3% of the price and pay it to the Tax Agency with Form 211 within one month of the sale date. It makes no difference whether the buyer is resident or not. The money isn't an extra tax: it's an advance against the seller's own tax bill.
The only official exception is contributing the property to set up a Spanish company or increase its share capital. And if the buyer fails to pay the retention, the property itself is liable for the lower of the retention and the tax due. It's in the buyer's interest to comply, since the home they've just bought secures that debt.
Form 210: deadline and refund
The seller files Form 210 for the sale whatever the outcome: a gain, no gain or a loss. According to the AEAT, the deadline is three months after the end of the buyer's one-month window for Form 211. In practice, that means up to about four months from completion.
If the retention is more than the tax due, you claim the excess back on the same return. You'll need to attach proof of the retention and a document showing you hold the bank account. It can be filed online or on paper. Order HAC/623/2026 has amended Form 210, and the new version applies to returns filed from 1 January 2027.
Are there any exemptions for non-residents?
- Reinvesting in a main home: available only to EU or EEA residents, including Iceland, Norway and Liechtenstein (seventh additional provision of the Non-Resident Income Tax Act). It only applies if the property sold was your main home in Spain; it does not cover a second or holiday home. Reinvest part of the proceeds and the exemption is proportional. The buyer still withholds 3% and you still file Form 210. Since Brexit, UK residents don't qualify.
- Purchases made in 2012: half the gain is exempt on urban homes bought between 12 May and 31 December 2012, except for certain transactions between spouses and relatives.
What if the property is owned by a couple or several co-owners?
Each non-resident co-owner reports their own share separately on their own Form 210. The exception: if both spouses are non-resident, they can file a single return for the sale.
Plusvalía tax in Spain: a separate municipal tax
The municipal plusvalía (IIVTNU) is a separate tax charged by the town hall where the property is, whether that's Málaga, Marbella, Mijas or Benalmádena. It taxes the rise in the value of the land, not your overall gain, and if the land hasn't gone up in value there's nothing to pay. It can be calculated two ways (using coefficients or the actual gain) and the lower figure applies. On a sale, the deadline is 30 working days.
If the seller is a non-resident individual, the law makes the buyer pay it as a substitute taxpayer. In practice, that's why it's usually deducted from the price at the notary.
Timeline: who files what, and when
| Who | What | When |
|---|---|---|
| Buyer | 3% retention (Form 211) | Within one month of the sale |
| Buyer, as substitute taxpayer | Municipal plusvalía if the seller is a non-resident individual | 30 working days |
| Seller | Form 210 reporting the gain or loss | Three months after the Form 211 month (up to about four months from the sale) |
| Tax Agency | Refund of any excess withheld | Once a Form 210 refund claim has been filed |
Documents worth having ready
- Your purchase deeds (escritura).
- Invoices for purchase costs, improvements and selling costs.
- Proof of the Form 211 filed by the buyer.
- A bank certificate showing you hold the account for the refund.
Conclusion: plan the sale before you sign
If you're a non-resident selling on the Costa del Sol, keep three things in mind: 19% on the gain, the 3% the buyer withholds and filing Form 210 on time, even at a loss. This article is for information only and is not tax advice. Every sale should be worked out by a tax adviser or lawyer.
At EVS Property we help you value your home and plan the sale, so you know your numbers from day one. Ask for your free valuation.
Frequently asked questions
How much is capital gains tax in Spain for non-residents?
19% of the gain, meaning the sale price minus selling costs and the adjusted purchase value. The 3% the buyer withholds is credited against that bill on Form 210.
Do UK sellers pay 19% or 24%?
19%. Article 25.1.f of the Non-Resident Income Tax Act applies that rate to capital gains made by all non-residents, and that hasn't changed since Brexit.
What is the 3% retention?
It's an advance payment of the seller's tax. The buyer deducts it from the price and pays it to the Tax Agency with Form 211 within one month of the sale.
How do I get the 3% back?
By filing Form 210 within three months of the end of the Form 211 month, with proof of the retention and a bank account ownership certificate. If the tax due is lower than the amount withheld, the Tax Agency refunds the difference.
Is plusvalía the same as capital gains tax?
No. Plusvalía is a town hall tax on the rise in the value of the land, while the capital gain is taxed by the Tax Agency under Non-Resident Income Tax. A sale can be subject to both.
