🏡Selling property in Spain as a non-resident comes with several taxes and obligations. Here’s what you need to know:
1️⃣ Non-Resident Income Tax (IRNR)
- Applies to capital gains – the difference between the selling price and the purchase price, minus deductible costs such as notary fees, registry fees, property improvements, and agent commissions.
- Tax rate: 19%, same for EU and non-EU sellers.
- The buyer must withhold 3% of the sale price and pay it to the Spanish Tax Agency (Hacienda) using Form 211, within 1 month of signing.
- The seller must file Form 210 within 4 months of the sale (3 months after the withholding deadline).
- If the 3% withheld exceeds the final tax due, the seller can request a refund from Hacienda.
2️⃣ Municipal Capital Gains Tax (Plusvalía Municipal / IIVTNU)
- Levied on the increase in the value of urban land between purchase and sale.
- For non-resident sellers, the buyer is responsible for paying this tax, though they can reclaim it from the seller later.
- Paid to the Town Hall (Ayuntamiento), usually within 30 working days of the sale.
- Following recent rulings, no tax may be due if there is no actual increase in land value.
3️⃣ Other Taxes and Obligations
- IBI (Property Tax): Annual local tax based on cadastral value, usually prorated between buyer and seller.
- Form 720: Informative declaration for Spanish residents holding foreign assets over €50,000. Sellers who previously submitted this may need to update it after the sale.
- Wealth Tax (if applicable): Only relevant for very high-value properties; currently 100% exempt in Andalusia, but check for updates.
4️⃣ Recent Developments
- The European Commission is reviewing Spain for potential discriminatory taxation of non-residents using Spanish property as their main residence.
- A new law proposal is under discussion to impose an extra tax on foreign buyers (e.g., a surcharge or VAT increase). This could affect future purchases if approved.
✅ Quick Summary for Non-Resident Sellers on the Costa del Sol
| Tax / Obligation | What It Covers | Responsible Party |
|---|---|---|
| IRNR / Capital Gains Tax | 19% of net gain | Seller (3% withheld by buyer) |
| Municipal Plusvalía Tax | Increase in land value | Buyer (as substitute) |
| IBI (Property Tax) | Annual local property tax | Shared (seller/buyer) |
| Form 720 | Declaration of foreign assets | Seller (if previously submitted) |
| Upcoming laws | Potential new tax on foreign buyers | TBD (under debate) |
Bottom line: ✅
If you’re a non-resident selling property on the Costa del Sol, the main taxes to focus on are IRNR (19%) and Plusvalía Municipal, plus the usual transaction costs like agent fees, notary, and energy certificates.
Want to know more about the taxes for Non-Residents vendors?
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