Plusvalía and capital gains when selling property in Spain

Important — please read first. This is general information for a broad audience, not personalised legal or tax advice, and no lawyer or asesor fiscal has reviewed your individual circumstances. Spanish tax rates, thresholds and forms change frequently; the figures below reflect the rules understood to be in force as of the review date (28 July 2026) and may have changed since. Before acting, confirm the rates and rules that apply to your specific case with a qualified, registered (colegiado) tax adviser or lawyer. eVoost accepts no liability for decisions taken on the basis of this general information.

TL;DR: When selling Spanish property, non-resident sellers generally pay a flat 19% capital gains tax (IRNR) on their net profit, plus a local plusvalía municipal tax on the increase in the land’s value [1][2][4][8]. On a non-resident sale the buyer withholds 3% of the sale price and pays it to the tax authority as an advance on the seller’s capital gains liability [1][2]. Spanish residents are taxed on property gains as savings income, on a progressive scale that in 2026 runs from 19% to 30% [3][8].

Selling a property in Spain typically involves two taxes: a state tax on your net profit — capital gains tax (ganancia patrimonial) — and a local tax charged by the town hall on the increase in the land’s value, called plusvalía municipal or IIVTNU [4][5]. How the gain is calculated depends on residency: residents include it in their annual IRPF return, while non-residents file the non-resident income tax (IRNR) [1][3].

Plusvalía Municipal (IIVTNU): the local land value tax

The Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU), commonly called plusvalía municipal, taxes the increase in urban land value between acquisition and sale, and is managed by the town hall where the property is located [5]. In a sale, the obligation to pay falls on the seller, generally within 30 business days of the sale [5].

Following a ruling of Spain’s Constitutional Court (STC 182/2021) and the reform via Royal Decree-Law 26/2021, the calculation method was overhauled [4]. A key consequence: if there is no real gain on the transfer, the tax is no longer due [4]. Sellers may generally choose between two methods and apply whichever produces the lower bill [4]:

1. Objective method: multiplies the cadastral land value (valor catastral del suelo) by a coefficient set by the government, which varies with the number of years of ownership, then applies the rate set by the town hall [4][5].
2. Real-gain method: bases the tax on the actual gain attributable to the land, comparing purchase and sale prices and applying the land’s share of the total cadastral value [4]. Where the real gain is small or zero, this method is often more favourable [4].

Exact coefficients and municipal rates vary by town hall and change periodically, so the applicable figures should be confirmed locally.

Capital gains tax (Ganancia Patrimonial): the state tax on profit

Capital gains tax (ganancia patrimonial) is a national tax administered by the Agencia Tributaria, levied on the net profit. The gain is broadly:

Gain = (Sale Price − Selling Expenses) − (Purchase Price + Purchase Costs + Major Improvements)

Allowable items typically include notary fees, land registry fees and agent commissions. The rate differs for residents and non-residents [1][3].

Non-resident sellers

If you are not a Spanish tax resident, the capital gain on a property sale is generally taxed at a flat 19% — a rate that applies to non-residents regardless of country of origin, including EU, UK and US residents [1][2][8].

Resident sellers

For Spanish tax residents, the gain is treated as savings income (renta del ahorro) and taxed on a progressive scale within the annual IRPF return [3]. The 2026 savings-income bands are [3][8]:

• Up to €6,000: 19%
• €6,001 – €50,000: 21%
• €50,001 – €200,000: 23%
• €200,001 – €300,000: 27%
• Over €300,000: 30%

(The top band rose from 28% to 30% for income over €300,000 under Ley 7/2024, effective from 2025 [3][8].)

The 3% withholding (Retención) on non-resident sales

To secure the tax due, Spanish law requires the buyer to withhold 3% of the declared sale price and pay it to the Tax Agency on the seller’s behalf, using Modelo 211, generally within one month of completion [1][2].

This 3% is not the final tax — it is a payment on account of the seller’s 19% capital gains liability [1][2]. After the sale the seller files Modelo 210 to declare the actual gain and settle up [1][2]:

• If the 19% tax on the gain is more than the 3% withheld, the seller pays the difference [1][2].
• If it is less (or the property was sold at a loss), the seller can claim a refund of the excess [1][2].

The Modelo 210 is generally due within four months of the deed of sale; missing this deadline can jeopardise any refund [1][2]. Confirm current deadlines and procedure before filing.

Double-taxation relief for foreign sellers

If you are tax resident in another country, the profit from a Spanish property sale may also be taxable there. To avoid double taxation, Spain has treaties with many countries, including the United States and the United Kingdom [6][7]. These generally allow a foreign tax credit for the capital gains tax paid in Spain, reducing the tax owed at home [6][7].

For US persons, Spanish tax can generally be credited against US tax on the same gain, subject to IRS rules, and US reporting (such as FBAR/FATCA) still applies [6]. UK residents may claim relief under the UK–Spain convention [7]. Treaty outcomes are fact-specific; confirm with an adviser in your country of residence.

Reliefs and exemptions

Spain’s main capital gains reliefs are aimed at residents selling their main home (vivienda habitual) [3]:

• Main-home reinvestment exemption: residents may be fully exempt if they reinvest the full proceeds into a new main home within two years (before or after the sale) [3].
• Over-65 exemption: residents over 65 selling their main home may be fully exempt on the gain, with no reinvestment requirement [3].

Non-residents generally cannot use these reliefs [2], with one notable, fact-specific exception: a non-resident who is tax resident in another EU/EEA country with a tax-information-exchange agreement may claim the reinvestment relief when selling their former main home in Spain and reinvesting in a new main home in another EU/EEA country [2].

How the process generally works for a non-resident seller

In outline: a valid NIE is needed to complete the sale; at the deed the buyer withholds 3% and pays it via Modelo 211 (generally within one month); the seller then files Modelo 210 (generally within four months) to settle the 19% and pay or reclaim the difference [1][2][8]; the seller also files and pays plusvalía municipal at the town hall within about 30 business days, using the cheaper of the two methods [4][5]; and finally the gain is declared in the country of residence, claiming a treaty credit for the Spanish tax [6][7]. Because deadlines, forms and figures change and depend on the municipality and your residency, a colegiado tax adviser or lawyer should confirm the steps for your case.

FAQ

Who pays plusvalía when selling — buyer or seller?
The seller, generally within 30 business days of signing the deed [5].

Do non-residents pay capital gains tax in Spain?
Yes — generally at a flat 19% on the net profit [1][2][8].

What is the 3% retention when a non-resident sells?
A withholding from the sale price that the buyer pays to the Tax Agency on the seller’s behalf, as an advance against the seller’s final 19% liability [1][2].

How can double taxation at home be avoided?
Typically by claiming a foreign tax credit on your domestic return for the tax paid in Spain; the Spain–US and Spain–UK treaties are designed to prevent the same income being fully taxed twice [6][7].

Is there an exemption for reinvesting or for being over 65?
Generally only for Spanish tax residents selling their main home [3]; non-residents usually do not qualify, with a key exception for EU/EEA residents reinvesting in a new main home in another EU/EEA country [2].

Sources:
[1] Agencia Tributaria (AEAT) — Non-residents (IRNR) — https://sede.agenciatributaria.gob.es/Sede/no-residentes.html
[2] BOE — Real Decreto Legislativo 5/2004, texto refundido de la Ley del IRNR — https://www.boe.es/eli/es/rdlg/2004/03/05/5/con
[3] BOE — Ley 35/2006 del IRPF — https://www.boe.es/eli/es/l/2006/11/28/35/con
[4] BOE — Real Decreto-ley 26/2021 (reforma de la plusvalía municipal / IIVTNU) — https://www.boe.es/eli/es/rdl/2021/11/08/26
[5] BOE — Real Decreto Legislativo 2/2004, Ley Reguladora de las Haciendas Locales (IIVTNU) — https://www.boe.es/eli/es/rdlg/2004/03/05/2/con
[6] IRS — Spain tax treaty documents (US–Spain double-taxation treaty & 2019 protocol) — https://www.irs.gov/businesses/international-businesses/spain-tax-treaty-documents
[7] GOV.UK / HMRC — Spain: tax treaties (UK–Spain double-taxation convention) — https://www.gov.uk/government/publications/spain-tax-treaties
[8] PwC Worldwide Tax Summaries — Spain, Individual — https://taxsummaries.pwc.com/spain/individual/taxes-on-personal-income

Disclaimer. This guide is published by eVoost (Editorial) for general informational purposes only and does not constitute legal or tax advice. It has not undergone human legal review. All rates, thresholds, forms and deadlines are stated as understood on the review date (28 July 2026) and are subject to change; some depend on your municipality and residency. Do not rely on it for a transaction: consult a qualified, registered (colegiado) tax adviser or lawyer to confirm the rules that apply to your specific situation.