Selling a property in Spain as a non-resident

The tax on your gain

Spain generally taxes a non-resident seller’s capital gain at 19%. You declare it on form 210. Keep your purchase deed and receipts so your tax adviser can work out which costs count when calculating the gain.

If the property was your main home in Spain and you reinvested the proceeds, ask your adviser whether you meet the tax agency’s conditions for reinvestment relief.

What happens to the 3% withholding?

The buyer normally keeps back 3% of the agreed price at completion and pays it to the Spanish tax office using form 211. They have one month from the transfer to pay and should give you a copy of the form. Ask for it when you agree the arrangements for completion.

The amount withheld is credited against your Spanish tax on the gain. If it exceeds the tax you owe, you can request a refund of the difference.

The municipal land tax

The town hall may charge plusvalía on the increase in the value of the urban land. Ask your lawyer how the town hall will calculate it and who is responsible for filing and payment. If the seller is a non-resident individual and the tax applies, the buyer is the substitute taxpayer under Article 106.2. If you’re buying from a non-resident seller, raise this and the 3% withholding early so your lawyer can account for both at completion.

You can organise the sale yourself, including the handover of paperwork between the buyer and your advisers. If you’d rather have help coordinating it, TND can keep track of what’s needed for completion so your lawyer or tax adviser has the relevant documents.

_{Cover photo — Gabriel Fdez., CC BY 2.0, cropped.}