Most foreign owners think hard about tax when they buy a Spanish property and not at all about tax when they sell one. That's backwards. The buy-side taxes are fixed and unavoidable; the sell-side bill is where planning actually moves the number — and where sellers who don't understand the withholding system get an unpleasant surprise at the notary.
How much is capital gains tax on Spanish property? Non-EU non-residents (including UK sellers) pay a flat 24% on the net gain; EU/EEA non-residents pay 19%. Spanish tax residents pay progressive savings-income rates of 19% to 30%. On top of this, the buyer must withhold 3% of the sale price and pay it to the tax office on your behalf, and a separate municipal tax — plusvalía — is due to the town hall.
Here is how the gain is calculated, what you can deduct, the exemptions that exist, and a worked example on a €400,000 sale.
The Rates: Resident vs Non-Resident
Spain taxes property gains differently depending on your tax residency — not your nationality.
Non-residents pay Non-Resident Income Tax (IRNR) on the gain at a flat rate:
| Seller | CGT Rate (2026) |
| --- | --- |
| EU / EEA resident (e.g. Netherlands, Germany, Sweden, Norway) | 19% |
| Non-EU resident (e.g. UK, Switzerland, USA) | 24% |
Spanish tax residents pay CGT within personal income tax at progressive savings rates:
| Gain Band | Rate |
| --- | --- |
| First €6,000 | 19% |
| €6,000–€50,000 | 21% |
| €50,000–€200,000 | 23% |
| €200,000–€300,000 | 27% |
| Above €300,000 | 30% |
How the Gain Is Actually Calculated
CGT is charged on the net gain, not the sale price. Both sides of the equation can be adjusted, and this is where most sellers overpay by failing to keep paperwork.
Acquisition value = what you paid, plus:
- ITP or VAT and stamp duty paid when you bought
- Notary, land registry and legal fees on the purchase
- Documented improvement works — extensions, a new kitchen, a pool, glazing. Structural improvements count; repainting and repairs do not. You need facturas (VAT invoices), not cash-in-hand receipts
Transfer value = what you sold for, minus:
- Estate agent commission (typically 3–5% on the coasts — invoiced)
- Your legal fees on the sale
- Plusvalía municipal, if you as seller pay it (the default)
- Energy performance certificate and other mandatory sale costs
The practical lesson: every invoice you keep is a rate-of-tax discount. A €15,000 documented reform on a non-EU seller's property is €3,600 off the tax bill.
The 3% Withholding: Why the Buyer Keeps Part of Your Money
This is the mechanism that surprises every first-time non-resident seller.
When a non-resident sells Spanish property, the buyer is legally required to withhold 3% of the full sale price and pay it directly to the Agencia Tributaria within one month, using Modelo 211. You receive 97% of the price at the notary. The 3% is not an extra tax — it's a payment on account of your CGT, designed to stop non-residents leaving the country with the tax unpaid.
Then, within four months of completion, you file Modelo 210 declaring the actual gain:
- If your real CGT bill exceeds the 3%, you pay the difference
- If the 3% exceeds your bill — or you sold at a loss — you claim a refund of the difference
Plusvalía Municipal: The Second, Separate Tax
Independently of CGT, the town hall charges the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana — universally called plusvalía municipal. It taxes the increase in the *land* value (not the building) over your ownership period.
Key points:
- Who pays: legally the seller — but when the seller is non-resident, the buyer becomes liable if the seller doesn't pay, so it's settled at completion in practice
- How it's calculated: since the 2021 reform, you may choose the lower of two methods — an objective calculation based on cadastral land value and years held, or the real gain method based on actual purchase and sale prices
- No gain, no tax: if you can prove you sold at a loss, plusvalía is not due — a Constitutional Court ruling the 2021 reform codified
- Typical amounts: highly variable by municipality and holding period — from a few hundred euros to €5,000+ on long-held property in high-value areas
Exemptions and Reliefs: Who Escapes the Tax
Spain offers genuine exemptions — but almost all of them require Spanish tax residency, which is why non-resident holiday-home owners rarely qualify.
Principal residence reinvestment relief (residents only). If the property was your habitual residence for at least three years and you reinvest the full proceeds in a new principal residence — in Spain or the EU/EEA — within two years, the gain is exempt. Partial reinvestment gets partial exemption.
Over-65 principal residence exemption (residents only). Spanish residents aged 65+ selling their habitual residence pay no CGT at all, with no reinvestment required. This is the single biggest exemption in the system and a real factor for retirees deciding whether to become resident before selling.
Over-65 annuity relief (residents only). Gains on *any* asset — including a second home — are exempt for over-65 residents who reinvest up to €240,000 of proceeds into a qualifying life annuity within six months.
The 1994 abatement coefficients. Property acquired before 31 December 1994 benefits from transitional reductions on the portion of gain accrued to January 2006, capped at €400,000 of lifetime transfer value. Long-term owners should have their advisor run this calculation — it can cut five figures from the bill.
What no longer exists: inflation indexation of the purchase price was abolished in 2015. A property bought in 2002 is compared to its 2026 sale price in nominal euros, which quietly inflates real tax rates on long-held homes.
Worked Example: Non-Resident UK Seller, €400,000 Sale
A UK-resident owner sells a Costa Blanca villa in 2026 for €400,000. She bought it in 2016 for €280,000 and installed a pool and new kitchen in 2019 for €25,000, all invoiced.
Acquisition value:
| Item | Amount |
| --- | --- |
| Purchase price (2016) | €280,000 |
| ITP at 10% + notary, registry, legal | €31,500 |
| Documented improvements | €25,000 |
| Total acquisition value | €336,500 |
| Item | Amount |
| --- | --- |
| Sale price | €400,000 |
| Agent commission (4% + VAT) | −€19,360 |
| Legal fees on sale | −€1,500 |
| Plusvalía municipal (real-gain method) | −€2,100 |
| Net transfer value | €377,040 |
| --- | --- |
| Net gain | €40,540 |
| CGT at 24% (non-EU) | €9,730 |
| 3% withheld at completion (€400,000 × 3%) | €12,000 |
| Refund due after Modelo 210 | €2,270 |
How to Legally Reduce Your CGT Bill
1. Keep every invoice from day one. Purchase costs and improvement facturas are deductions. No invoice, no deduction — the tax office does not accept bank transfers or photos of a new kitchen as proof. 2. Time residency deliberately. If you're planning to move to Spain anyway, becoming tax resident and living in the property for three years before selling can unlock the reinvestment relief — or full exemption at 65+. Run the numbers both ways; residency has its own tax costs. 3. Sell in a year with offsetting losses (residents). Spanish residents can offset capital losses against gains within the savings base, with a four-year carry-forward. 4. Check the pre-1995 coefficients if you've owned since the early nineties. 5. Choose the cheaper plusvalía method. You have the legal right to the lower of the objective and real-gain calculations — town halls apply the objective method by default. 6. Stay current on Modelo 210 non-resident income tax while you own. Outstanding annual filings are the most common reason 3% refunds get blocked. The annual obligation is covered in our guide to the ongoing costs of owning property in Spain. 7. Don't under-declare — ever. Declaring a lower price to cut the buyer's ITP was the old game; it simply inflates *your* CGT today, and the tax office's reference-value system flags it anyway.
And remember your home-country position: UK residents also owe UK CGT on the same gain, with a credit for Spanish tax paid under the UK–Spain treaty. Spanish tax is not the end of the calculation — coordinate both filings.
Frequently Asked Questions
How much is capital gains tax in Spain for non-residents? 19% of the net gain for EU/EEA residents, 24% for everyone else, including UK sellers. The buyer withholds 3% of the sale price on account, and you settle the difference via Modelo 210 within four months.
Do I get the 3% withholding back? If your actual CGT liability is less than the amount withheld — or you sold at a loss — yes, but only if you file Modelo 210 within four months of the sale. Refunds typically take 6–12 months to arrive.
Do I pay capital gains tax if I sell at a loss? No CGT, and no plusvalía if you can evidence the loss. But the buyer must still withhold the 3% — you reclaim all of it through Modelo 210.
What is plusvalía municipal? A separate town-hall tax on the increase in land value during your ownership. Since 2021 you can elect the lower of an objective cadastral calculation or one based on your real gain, and no tax is due where there's no gain.
Can I avoid CGT by reinvesting in another Spanish property? Only if you're a Spanish tax resident selling your habitual residence of 3+ years and reinvesting in a new one. Non-residents selling holiday homes get no reinvestment relief.
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*Rates and rules current as of Q3 2026. CGT and plusvalía outcomes depend on your personal circumstances and municipality; verify current rules via the Agencia Tributaria and take advice from a qualified Spanish tax advisor before selling. This is not tax advice.*
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