3% retention
The buyer keeps back 3% of the price and pays it to the Spanish tax office on account of your capital gains tax.
Guide for non-resident sellers
Selling a home in Spain while you live in the UK, Ireland or elsewhere is straightforward once you know how the taxes work. This guide covers the 3% retention, plusvalía, capital gains tax and how to complete the sale without travelling.
Book a free consultationSelling from abroad
Many owners on the Costa del Sol bought years ago and now live in another country. If you are not tax resident in Spain, the sale is taxed differently: part of the price is withheld at completion, and you file a Spanish tax return afterwards to settle the final figure.
With a Power of Attorney we can handle the whole sale for you — from the contract to the notary and the tax returns — and make sure any overpaid tax comes back to you. If you are tax resident in Spain, different rules apply and we will advise you on them.
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Step by step
We review your deeds, any mortgage and your tax position, and agree a fixed fee before any work begins.
We gather the documents a buyer's lawyer will ask for and prepare your Power of Attorney, so you are ready when an offer arrives.
We draft or review the private sale contract (contrato de arras) and make sure the buyer's deposit is properly secured.
The deeds are signed before a notary and the buyer pays the price, keeping back 3% for the tax office and, for non-resident sellers, the plusvalía.
Any outstanding mortgage is paid off from the price at completion, and we cancel it at the Land Registry.
We file your non-resident capital gains return (Modelo 210) and either pay any balance or reclaim the excess retention.
We cancel or transfer the utilities, notify the community and the town hall, and confirm the proceeds have reached your account.
Taxes at a glance
The buyer keeps back 3% of the price and pays it to the Spanish tax office on account of your capital gains tax.
Non-residents pay a flat 19% on the gain: what you sell for minus what you paid, less the costs the law allows you to deduct.
A local tax on the increase in the value of the land. For non-resident sellers, the buyer pays it to the town hall and deducts it from the price.
You may also need to report the sale where you live. Double taxation treaties usually let you offset the tax paid in Spain.
The 3% retention
Because you are not resident in Spain, the buyer must keep back 3% of the price and pay it to the tax office (Modelo 211) within one month of completion. It is not an extra tax: it is a payment on account of your capital gains tax.
Refunds are paid by the tax office and can take some months; we follow the claim through until the money reaches you.
Capital gains tax
The gain is the difference between the sale price and what the property cost you, after the deductions the law allows. Non-residents pay a flat 19% on it, whatever their country of residence. You can deduct:
If you inherited the property, the starting value is the one declared in the inheritance. We work out your figures before you agree a price, so the tax does not come as a surprise.
Selling without travelling
The buyer's lawyer will ask for a set of documents before anything is signed. We collect them for you and, with a Power of Attorney, sign on your behalf at every stage.
Where we act
From our office in Estepona we act for sellers along the whole coast, and we know what buyers' lawyers in each area will ask for. See also our seller service.
Good to know
On the full sale price. It is only a payment on account: your actual tax is 19% of the profit, and the difference is settled in your non-resident tax return.
Yes. If there is no gain, no capital gains tax is due and the whole 3% can be reclaimed by filing a non-resident tax return (Modelo 210).
The tax is the seller's, but when the seller is not resident in Spain the law makes the buyer pay it on the seller's behalf, so the amount is usually deducted from the price at completion. If the land has not increased in value, no plusvalía is due.
A flat 19% on the gain, whatever your country of residence, after deducting the allowable purchase, improvement and selling costs.
With the usual deposit contract (arras penitenciales), a seller who withdraws must return the deposit doubled. That is why we check your documents and tax position before you sign.
Possibly. Many countries tax their residents on gains made anywhere in the world, but double taxation treaties usually let you offset the tax paid in Spain. We can work alongside your accountant.
Free consultation
Tell us about the property and where you live, and one of our real estate lawyers will get back to you shortly — initial consultation, clear English and fixed fees agreed in advance.
Prefer to call? 951 87 04 72