Spanish Capital Gains Tax for Non-Residents 2026: Modelo 210

Selling Spanish property as a non-resident triggers Spanish capital gains tax (CGT) on the profit, withholding at completion, and a Modelo 210 filing obligation. The mechanics are different from any UK or US tax system you may be used to, and getting the timing wrong leaves the buyer holding 3% of the price as a guarantee against your tax bill. This guide walks through the full sequence: 3% retention, calculation of the gain, Modelo 210 filing, refunds where applicable.

The 3% Retention at Completion

When a non-resident sells Spanish property to any buyer, the buyer is legally required to withhold 3% of the agreed sale price and pay it directly to the Spanish tax authority within one month of completion (using Modelo 211). This 3% is not the seller’s tax — it is a payment on account against the seller’s eventual capital gains tax liability. The retention exists to ensure the Spanish state captures CGT before the non-resident seller leaves the country with the proceeds. If the actual CGT due ends up lower than the 3% retained, the seller can reclaim the difference; if higher, the seller pays the balance.

Calculating the Capital Gain

The Spanish capital gain on property sale is the sale price (less seller’s selling costs) minus the acquisition price (plus the buyer’s purchase costs originally paid: ITP/VAT, notary, registry, lawyer, agent commission). Inflation indexation has been removed for purchases after 1995. Major capital improvements with verifiable invoices add to the acquisition cost; routine maintenance does not. The resulting gain is taxed at the non-resident savings rate, which runs on a progressive scale similar to residents (19% on the first slice, 21% next, 23%, 27%, with the exact bands updated periodically — verify current bands before filing).

Modelo 210 — Where the Final Bill Settles

Within four months of the sale, the non-resident seller files Modelo 210 (capital gains version) declaring the calculated gain and the tax due, applying the 3% retention as a credit. The form is filed electronically with the Agencia Tributaria, requiring digital certificate or fiscal representative. Where the retention exceeds the tax due, Modelo 210 includes a refund request — typical refund timelines run from 6 to 12 months after filing. Where additional tax is due, payment accompanies the filing.

Plusvalia Municipal — A Separate Tax

In addition to capital gains tax, sellers face the Plusvalia Municipal — a local tax on the increase in the cadastral land value (not building) over the years of ownership. Following Constitutional Court rulings, the calculation method has been reformed: sellers can choose between a formula method based on cadastral land value increase and a real-gain method based on actual market gain on land. Sellers with a documented real loss on the land component can avoid Plusvalia entirely. Always model both methods before filing the local declaration at the relevant town hall.

Frequently Asked Questions

What if I sell at a loss?

The 3% retention still applies — the buyer must withhold regardless of whether the seller has a gain or loss. The seller files Modelo 210 declaring the loss and reclaims the 3% retention as a refund. Documenting the original purchase costs is essential to evidence the loss.

Do double-tax treaties help?

Spain’s double-tax treaties typically attribute taxing rights on Spanish real estate gains to Spain. Your home country may give a credit for Spanish tax paid against home-country tax on the same gain, eliminating double taxation. Verify your specific treaty — UK-Spain, US-Spain, and Ireland-Spain treaties all address property gains.

How long does the refund take?

Modelo 210 refund requests are typically processed within 6 to 12 months of filing. Spain’s tax administration has up to 6 months to pay before interest accrues automatically. Submit a clean filing with full documentation to avoid extension requests that drag the timeline.

Reviewed by: Maria Luisa de Castro, Expert in Off-plan Property Investment, CostaLuz Lawyers. Last updated: May 2026.

For the actual filing steps once you know what you owe, see our guide to filing Modelo 210 online.

If the property was not rented at all during the year, see our guide to imputed income tax on an empty Spanish property.