Editorial transparency and use of artificial intelligence
This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
Quick Answer: How Much Capital Gains Tax Will I Pay?
If the property was inherited rather than bought, your acquisition value is not a price you paid — it is the value declared for inheritance tax, which makes the calculation above depend on a decision taken much earlier. selling a property you inherited: how the gain is calculated
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It depends on your residency status and the size of your gain. Spanish tax residents pay between 19% and 28% on a progressive scale. Non-residents from the EU/EEA pay a flat 19%, while non-residents pay 19%. This guide walks you through the exact calculation with real examples for each scenario.
The Capital Gains Tax Formula
The formula for calculating your taxable gain on a Spanish property sale is:
Taxable Gain = Sale Price − (Acquisition Cost + Purchase Expenses + Improvement Costs)
What Counts as Deductible Costs
| Cost Type | Examples | Deductible? |
|---|---|---|
| Purchase price | Amount on the escritura de compraventa | Yes |
| Transfer tax (ITP) or VAT paid at purchase | 7%–10% ITP (resale) or 10% VAT (new build) + AJD | Yes |
| Notary fees at purchase | Typically €600–€1,500 | Yes |
| Land registry fees at purchase | Typically €400–€1,000 | Yes |
| Legal fees at purchase | Lawyer’s invoice (typically 1% of purchase price) | Yes |
| Structural improvements | New bathroom, kitchen renovation, extension, new roof | Yes (with invoices) |
| Estate agent commission at sale | 3%–5% + VAT | Yes |
| Routine maintenance | Painting, minor repairs, gardening | No |
| Furniture and fittings | Appliances, curtains, movable items | No |
Calculation Example 1: UK Non-Resident Selling in Marbella
Scenario: A British couple (non-EU since Brexit) bought an apartment in Marbella in 2018 for €250,000 and sell it in 2026 for €380,000.
| Item | Amount |
|---|---|
| Sale price | €380,000 |
| Purchase price | €250,000 |
| ITP paid at purchase (8%) | €20,000 |
| Notary + registry at purchase | €1,800 |
| Legal fees at purchase | €3,000 |
| Kitchen renovation (2020, with invoices) | €12,000 |
| Estate agent commission at sale (4% + VAT) | €18,392 |
| Total deductible costs | €304,692 |
| Taxable gain | €75,308 |
| Tax rate (non-EU) | 24% |
| Capital gains tax owed | €18,074 |
| 3% retention (paid by buyer) | €11,400 |
| Additional tax to pay via Modelo 210 | €6,674 |
Calculation Example 2: German Resident Selling in Malaga
Scenario: A German national who is a Spanish tax resident bought a house in Malaga in 2015 for €180,000 and sells it in 2026 for €320,000. It is not their main home.
| Item | Amount |
|---|---|
| Sale price | €320,000 |
| Purchase price | €180,000 |
| ITP paid at purchase (8%) | €14,400 |
| Notary + registry at purchase | €1,600 |
| Legal fees at purchase | €3,000 |
| Roof repair (2019, with invoices) | €8,500 |
| Agent commission at sale (3.5% + VAT) | €13,552 |
| Total deductible costs | €219,852 |
| Taxable gain | €100,148 |
Progressive tax calculation for Spanish residents:
| Band | Rate | Taxable Amount | Tax |
|---|---|---|---|
| First €6,000 | 19% | €6,000 | €1,140 |
| €6,000 – €50,000 | 21% | €44,000 | €9,240 |
| €50,000 – €100,148 | 23% | €50,148 | €11,534 |
| Total capital gains tax | €21,914 |
Calculation Example 3: Swedish Non-Resident (EU) Selling in Estepona
Scenario: A Swedish national (EU citizen, non-resident in Spain) bought a holiday apartment in Estepona in 2020 for €200,000 and sells in 2026 for €240,000.
| Item | Amount |
|---|---|
| Sale price | €240,000 |
| Purchase price | €200,000 |
| ITP paid (7%) | €14,000 |
| Notary + registry + legal | €4,200 |
| No improvements | €0 |
| Agent commission (4% + VAT) | €11,616 |
| Total deductible costs | €229,816 |
| Taxable gain | €10,184 |
| Tax rate (EU non-resident) | 19% |
| Capital gains tax owed | €1,935 |
| 3% retention (paid by buyer) | €7,200 |
| Refund to claim via Modelo 210 | €5,265 |
Main Home Exemption — When Residents Pay Zero
Spanish tax residents may be exempt from capital gains tax when selling their main home (vivienda habitual) in these cases:
- Over 65: Full exemption, no reinvestment required
- Under 65: Full exemption IF the entire sale proceeds are reinvested in a new main home within 2 years (before or after the sale)
- Partial reinvestment: If you reinvest only part of the proceeds, only that proportion is exempt
- Dependents over 65: If you sell to fund care for a dependent person over 65, additional exemptions may apply
This exemption is NOT available to non-residents.
How to File: Modelo 210 Step-by-Step
Non-residents must file Modelo 210 within 4 months of the sale date. This is a self-assessment form filed with the Agencia Tributaria.
- Filing period: Within 4 months of the notary date (escritura)
- Payment or refund: If you owe more than the 3% retention, you pay the difference. If you owe less, you request a refund.
- Documentation needed: Escritura de compraventa (purchase and sale), receipts for deductible expenses, proof of improvements
- How to file: Online via the AEAT website (with digital certificate) or through a lawyer/gestoría
- Refund timeline: Typically 6–12 months for refund processing
Double Taxation — Will I Pay Twice?
Most countries have Double Taxation Treaties (DTTs) with Spain. Under these treaties, you are typically required to declare the gain in both countries but receive a tax credit in your home country for the tax already paid in Spain. The practical result is that you pay whichever rate is higher — not both.
| Your Country | Treaty with Spain? | Relief Method |
|---|---|---|
| United Kingdom | Yes | Tax credit in UK for Spanish tax paid |
| Germany | Yes | Exemption with progression in Germany |
| France | Yes | Tax credit in France |
| Netherlands | Yes | Tax credit in Netherlands |
| United States | Yes | Foreign tax credit on US return |
| Sweden | Yes | Tax credit in Sweden |
| Norway | Yes | Tax credit in Norway |
Frequently Asked Questions
Can I deduct the cost of furniture when calculating my gain?
No. Movable items like furniture, appliances, and decorations are not deductible. Only structural improvements that increase the property’s value (and have proper invoices) can be deducted.
What if I inherited the property rather than buying it?
Your acquisition cost is the declared value of the property in the inheritance tax declaration (Impuesto de Sucesiones), plus any inheritance tax and notary/registry fees you paid. The gain is calculated from that value to the sale price.
Has the inflation coefficient been removed?
Yes. From January 2024 onward, the inflation coefficient (“coeficiente de actualización”) that previously reduced the taxable gain for long-held properties has been eliminated. The full nominal gain is now taxable.
Can my lawyer handle the entire tax filing?
Yes. Most property lawyers in Spain routinely handle Modelo 210 filings for non-resident sellers. They will need your sale and purchase documents, improvement invoices, and bank details for any refund.
Get a Personalised Capital Gains Estimate
Every property sale is different. Our tax lawyers can calculate your exact liability based on your specific circumstances — including deductible costs, residency status, and applicable treaty relief.
Contact us on WhatsApp with your purchase and expected sale details for a quick estimate, or book a tax consultation for a full analysis.
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For a complete overview of property law and conveyancing in Spain, see our Buying Property in Spain Complete Legal Guide 2026.
Aviso legal: Esta informacion se proporciona unicamente a titulo orientativo y no constituye asesoramiento fiscal o legal personalizado. Cada caso debe evaluarse de forma individual segun las circunstancias especificas del cliente. Es imprescindible consultar a un especialista cualificado antes de tomar cualquier decision.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
The 3% Retention When Selling Property in Spain
When a non-resident sells property in Spain, the buyer must withhold 3% of the purchase price and pay it to the Spanish Tax Agency (AEAT) using Modelo 211, within one month of signing the title deed (escritura). The 3% is an advance payment against the seller’s capital gains tax — not a separate tax. If the actual CGT is lower than the 3% withheld (or there was no gain), the seller reclaims the difference by filing Modelo 210 within four months of the sale; refunds typically take 6–12 months.
This is general information, not definitive legal advice. Speak with a qualified Spanish lawyer about your specific situation.
Capital Gains Tax & the 3% Retention — Common Questions
What is the 3% retention when selling property in Spain?
When a non-resident sells property in Spain, the buyer must withhold 3% of the purchase price and pay it to the Spanish Tax Agency (AEAT) using Modelo 211, within one month of signing the title deed (escritura). The 3% is an advance payment against the seller’s capital gains tax, not a separate tax. This is general information, not definitive legal advice. Speak with a qualified Spanish lawyer about your specific situation.
How do I reclaim the 3% retention in Spain?
File Modelo 210 within four months of the sale, declaring the actual capital gain. If the 3% withheld is greater than your real capital gains tax (or there was no gain), you claim the difference back as a refund; refunds typically take 6 to 12 months. This is general information, not definitive legal advice. Speak with a qualified Spanish lawyer about your specific situation.
How much is capital gains tax for a non-resident selling property in Spain?
Non-residents pay 19% (EU/EEA residents) or 24% (non-EU residents) on the net gain, that is the sale price minus the acquisition cost and deductible costs such as notary, registry and agency fees, declared on Modelo 210. This is general information, not definitive legal advice. Speak with a qualified Spanish lawyer about your specific situation.
Capital gains tax Spain non-resident: what rate applies in 2026?
In 2026 the capital gains tax on a Spanish property sale by a non-resident is 19% for EU/EEA residents and 24% for non-EU residents, charged on the net gain only. An EU/EEA habitual-residence reinvestment exemption may apply in some cases. This is general information, not definitive legal advice. Speak with a qualified Spanish lawyer about your specific situation.
CostaLuz Lawyers regularly advises foreign owners on capital gains tax when selling Spanish property.
Reviewed by María Luisa de Castro, CEO at CostaLuz Lawyers — specialist in Spanish property tax for foreign owners — Updated 2026
This is general information, not definitive legal advice — every case requires individual analysis.
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