What's in this guide
- What non-resident CGT actually is
- Residents vs non-residents — the key difference
- The 3% buyer retention and Modelo 211
- The 19% rate and how the gain is calculated
- EU vs non-EU treatment
- Reclaiming the excess on Modelo 210
- Exemptions — over-65s, reinvestment, primary residence
- Plusvalia municipal — the second tax
- Selling step by step — the seller's checklist
- Six mistakes that cost expat sellers money
- How insurance fits in — before and after the sale
- Frequently asked questions
1. What non-resident CGT in Spain actually is
When a non-resident sells Spanish property — a flat in Estepona, a villa in Mallorca, a finca in Andalucia, even a parking space in Barcelona — Spain taxes the gain (the difference between purchase and sale, adjusted for costs) under the Impuesto sobre la Renta de no Residentes (IRNR). The legal basis is the consolidated text of the IRNR Law, Real Decreto Legislativo 5/2004, published on the BOE. For residents the equivalent regime is Impuesto sobre la Renta de las Personas Físicas (IRPF) under Ley 35/2006.
The rate is a flat 19%. There are no progressive bands as you would see in the resident IRPF return. Instead there is a unique advance-payment mechanism — the 3% retention — under which the buyer becomes a tax agent of AEAT and withholds 3% of the gross sale price on the day of the deed, paying it directly to the tax office on Modelo 211 within one month. The seller then reconciles the actual gain against that 3% on Modelo 210 within four months of the sale. If the real CGT was lower, AEAT refunds the difference. If it was higher, the seller pays the balance.
Non-resident CGT at a glance
Flat 19% Rate
One flat rate on the gain for all non-residents — EU and non-EU. Brexit did not change CGT rates, only the deductions allowed on annual rental income.
3% Retention
The buyer withholds 3% of the gross sale price at the notary and pays it to AEAT on Modelo 211 within one month. It is an advance on the seller's CGT.
Modelo 210 Reconciliation
Seller files Modelo 210 (income code 28) within four months of the sale. If real CGT is less than the 3%, AEAT refunds the difference — usually 6–12 months.
Spanish-Source Only
Non-residents pay Spanish CGT only on Spanish-source gains. Residents pay on worldwide gains under IRPF — a much wider net.
Plusvalia Municipal
Separate town-hall tax on the increase in urban land value during your ownership, paid within 30 days of the deed. Sits on top of state CGT.
Limited Exemptions
EU/EEA reinvestment exemption for sale of a main residence into a new EU/EEA main home within two years. No over-65 exemption for non-residents.
2. Residents vs non-residents — the key difference
Spain treats the same transaction very differently depending on where you are tax resident on the day of the deed. The line is drawn at 183 days: spend more than that in Spain in a calendar year (or have your centre of economic interest, or your spouse and children there), and you are a tax resident — taxed on worldwide income and gains under IRPF. Spend fewer, and you are a non-resident — taxed only on Spanish-source income and gains under IRNR.
| Aspect | Spanish tax resident (IRPF) | Non-resident (IRNR) |
|---|---|---|
| Scope of CGT | Worldwide gains — UK shares, French property, US ETFs all in scope | Spanish-source gains only — Spanish property, Spanish-listed shares |
| Rate on property gain (2026) | Progressive: 19% to €6,000, 21% €6k–€50k, 23% €50k–€200k, 27% €200k–€300k, 28% above | Flat 19% |
| Over-65 main-home exemption | Yes — full exemption if owned + occupied 3+ years as habitual residence | No — never available to non-residents |
| Reinvestment exemption (main home) | Yes — full exemption if proceeds reinvested in a new main home within 2 years | EU/EEA only — proceeds reinvested in a main home in another EU/EEA state |
| 3% buyer retention applies? | No — residents are not subject to Modelo 211 (they provide a tax-resident certificate) | Yes — buyer must withhold 3% on Modelo 211 |
| Annual obligation | Modelo 100 (IRPF) — full annual return | Modelo 210 only for Spanish-source events |
The implication for an expat is significant. If you are six years into a holiday-home ownership and selling, your residence status on the day of the deed decides whether Spain takes 19% flat or whether your gain enters the progressive IRPF schedule. It also decides whether you can claim the over-65 main-home exemption — which is one of the most valuable reliefs in Spanish tax. Becoming Spanish-resident before selling a habitual home you owned for years can save tens of thousands of euros; but residency comes with worldwide-income reporting, the Modelo 720, and IRPF on everything else. Always plan a sale with a gestor or asesor fiscal at least six months out.
3. The 3% buyer retention — Modelo 211
The 3% retention is unique to non-resident sales and surprises every first-time seller. It is not the seller's tax bill — it is an advance payment, and the buyer has to make it whether the seller's actual gain is large, small or zero.
How it works at the notary
On the day of completion (the escritura de compraventa), the buyer's lawyer prepares two bank cheques: one to the seller for 97% of the agreed price, and one — or a separate transfer — for 3% to be paid to AEAT. Within one month of the deed, the buyer files Modelo 211 declaring the retention and paying the 3% to the tax office. The buyer's copy of the stamped Modelo 211 then goes to the seller, who needs it to reconcile their own Modelo 210.
What if the buyer fails to retain?
If the buyer doesn't withhold the 3%, AEAT pursues the buyer for the unpaid sum — and the property itself is treated as security for the debt. This is why every conveyancing lawyer in Spain insists on the retention from non-resident sellers. The retention applies regardless of whether the seller is selling at a gain or a loss; if the gain is zero or negative, the seller still has the 3% withheld and reclaims the whole amount on Modelo 210.
The legal basis
The 3% retention is set out in Article 25.2 of R.D.Leg. 5/2004 (consolidated IRNR Law) and the implementing rules in the IRNR Regulation. The Modelo 211 form is filed by the buyer via AEAT's portal at sede.agenciatributaria.gob.es.
4. The 19% rate and how the gain is calculated
The taxable gain is the sale price minus the acquisition cost, each adjusted for the costs of buying and selling. Unlike residents, non-residents do not get the progressive 19–28% bands — it's a flat 19% applied to the whole gain.
Acquisition value — what you put in
- Original purchase price on the escritura
- Transfer tax (ITP) or VAT (IVA) paid at purchase
- Notary, registry and gestor fees on purchase
- Legal fees on purchase
- Documented capital improvements during ownership (new kitchen, extension, pool) — invoices with IVA required
Disposal value — what you took out
- Sale price on the escritura
- Less: estate agent commission
- Less: notary and registry fees on sale
- Less: plusvalia municipal (if borne by seller — most commonly the case)
- Less: energy-performance certificate cost
Worked example. A Dutch couple bought a Javea villa in 2015 for €280,000. They paid €25,200 in ITP and €4,500 in notary, registry and legal fees. They added a €40,000 pool and terrace in 2019 (with proper invoices). They sell in 2026 for €420,000, with €12,600 agent commission, €1,800 notary/registry, €2,400 plusvalia and €230 EPC.
- Adjusted acquisition: €280,000 + €25,200 + €4,500 + €40,000 = €349,700
- Adjusted disposal: €420,000 − €12,600 − €1,800 − €2,400 − €230 = €402,970
- Gain: €402,970 − €349,700 = €53,270
- CGT at 19%: €10,121
- 3% retention on €420,000 = €12,600. Refund due: €2,479
5. EU vs non-EU treatment — what actually differs
The CGT rate is the same (19%) for all non-residents. The differences sit elsewhere:
| Feature | EU/EEA non-residents | Non-EU non-residents (UK, US, AU, CA, CH) |
|---|---|---|
| CGT rate on property sale | 19% | 19% |
| 3% buyer retention | Yes — Modelo 211 | Yes — Modelo 211 |
| Reinvestment exemption (main home) | Yes — reinvest in a new main home anywhere in EU/EEA within 2 years | No — exemption unavailable |
| Annual rental-income deductions (Modelo 210) | Yes — full expenses, mortgage interest, depreciation | No — gross-only at 24% |
| Double-tax treaty offset in home country | Yes — credit method common | Yes — UK DTT credit, US Form 1116, etc. |
| Inheritance/gift treatment of Spanish property | EU regional reliefs apply (CJEU rulings) | Now equal post-2018 CJEU ruling — but case-by-case |
The biggest practical difference for CGT is the reinvestment exemption. An Irish family selling a holiday flat in Nerja and buying a new flat in Lisbon as their main home can defer the entire gain. A British family doing the same — even if the proceeds buy a new flat in Manchester as a main home — cannot. Brexit removed the UK from the EU/EEA exemption, and the AEAT's interpretation has been strict.
6. Reclaiming the excess on Modelo 210
Modelo 210 is the workhorse form of non-resident tax in Spain. For property income it is filed quarterly or annually (see our Modelo 210 guide); for the sale of property it is filed once, within four months of the sale deed, using income-type code 28.
What to file
- Modelo 210 with income code 28 — gains on transfers of immovable property
- Acquisition and disposal values broken down (original price + costs vs sale price − costs)
- The buyer's Modelo 211 reference number to credit the 3% retention
- A Spanish IBAN for any refund (essential — AEAT does not refund to foreign accounts in most cases)
- Your NIE and digital certificate (or via a gestor with your authorisation)
When the result is a refund
Most non-resident sales end with a refund because the 3% headline retention almost always exceeds 19% of the actual gain — unless the property has multiplied in value. The refund typically takes 6 to 12 months from filing. AEAT can ask for supporting documents (acquisition escritura, ITP receipt, capital-improvement invoices) before paying out, so keep everything in one folder from the start of ownership.
When the result is more tax
If the gain is large — long-held property in a hot market — the 19% bill exceeds the 3% retention. The seller pays the balance with the Modelo 210 filing within the four-month window. Late payment carries the same 5–20% surcharges and interest as other IRNR filings.
7. Exemptions — over-65s, reinvestment, primary residence
Over-65 main-residence exemption (residents only)
Spain's most generous CGT relief: if you are tax resident in Spain, aged 65 or over, and the property has been your habitual residence for at least three years, the entire gain on its sale is fully exempt from IRPF. The exemption is set out in Article 33.4(b) of Ley 35/2006 (IRPF). It does not apply to second homes and does not apply to non-residents.
For long-term expats this is a major planning point. If you've moved to Spain in retirement on the Non-Lucrative Visa, established habitual residence, and you decide to sell the Spanish home you bought a decade ago, becoming Spanish tax-resident for the year of the sale can produce a zero CGT bill — provided you are over 65 and have lived in the property as your main home for at least three of the years before sale.
Reinvestment exemption — main residence
Residents who sell their habitual home and reinvest the proceeds in a new habitual home anywhere in the EU/EEA within two years (before or after the sale) qualify for the reinvestment exemption — full if 100% of proceeds reinvested, proportional otherwise. Non-residents from EU/EEA can claim the same relief; non-EU residents (UK post-Brexit, US, etc.) cannot.
Annuity-conversion exemption (residents over 65, all properties)
For residents over 65 selling any property — not just the main home — the gain is exempt if reinvested in a qualifying lifetime annuity within six months, up to a €240,000 cap. Useful for downsizing retirees but unavailable to non-residents.
Death and inheritance
Property transferred on death is not subject to CGT — heirs inherit at the date-of-death market value (the so-called plusvalia del muerto was abolished decades ago at state level). They will pay Spanish inheritance tax (ISD) and local plusvalia municipal, but no CGT step is owed.
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Home Insurance Quote Holiday Home Quote8. Plusvalia municipal — the second tax on sale
The Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU) — universally called plusvalia municipal — is a separate town-hall tax on the increase in urban land value during your ownership. It is on top of state CGT and is usually borne by the seller (though parties can agree otherwise in the contract).
How it's calculated since 2021
The Spanish Constitutional Court (STC 182/2021) overturned the previous formula and forced an overhaul. From November 2021 sellers can choose between two methods and pay the lower:
- Objective method — cadastral land value × coefficient based on years of ownership × municipal rate (max 30%)
- Real-gain method — proportion of the real gain attributable to land value (cadastral land share of total cadastral value) × municipal rate
If the sale produces no real gain in land value — selling at a loss, or selling below the indexed purchase price — plusvalia is zero. Document the loss with both escrituras and the cadastral value attributed to land at each date.
Deadline and authority
Plusvalia is filed at the ayuntamiento (town hall) where the property sits, within 30 working days of the deed for sales (six months for inheritance, extendable by six). Each municipality sets its own rate and forms; your gestor or the buyer's lawyer typically handles it for sellers.
9. Selling step by step — the non-resident seller's checklist
From listing to refund — the eight stages
- 1. Gather acquisition paperwork — original escritura, ITP receipt, notary/registry invoices, capital-improvement invoices with IVA. These define your acquisition value and you'll need them six months later for Modelo 210.
- 2. Appoint a Spanish lawyer or gestor — non-resident sales are conveyancing-heavy. A bilingual lawyer ensures the 3% retention is handled, plusvalia is filed and your Modelo 210 deadline is calendared.
- 3. Open or keep open a Spanish bank account — for the sale proceeds and (later) the AEAT refund.
- 4. Sign the deed — buyer prepares the 3% retention. You walk away with 97% of the price.
- 5. Buyer files Modelo 211 within one month — buyer's lawyer sends you the stamped copy. Without it you cannot file Modelo 210.
- 6. Plusvalia within 30 working days — the town hall, by the seller (almost always), receipt kept.
- 7. File Modelo 210 with code 28 within four months — gain calculation, 3% retention credited, refund or balance settled. Spanish IBAN for refund.
- 8. Notify your home country — UK self-assessment (CGT credit), US Form 1116, French/German equivalents. Spanish CGT credits against home-country liability via the double-tax treaty.
Notary and Land Registry information for sellers is collated by the two professions' joint portal at notariosyregistradores.com, and you can check the property's registry status at the Colegio de Registradores.
10. Six mistakes that cost expat sellers money
1. Treating the 3% retention as the final tax bill.
The 3% is an advance, not a settlement. Selling at a loss or a small gain means a refund is sitting at AEAT — but only if you file Modelo 210. We've seen British sellers walk away from €5,000–€20,000 of recoverable retention because they thought "Spain took its 3%, that's it." File the Modelo 210 within four months, every time.
2. No invoices for capital improvements.
That €40,000 pool added in 2019 only counts in your acquisition value if you have proper invoices with IVA. Cash builders, "amigo" prices and Mr. Antonio's handshake jobs are worthless to AEAT — and they audit. Keep paid invoices, bank transfers and supplier ledgers from day one of ownership.
3. Not allocating plusvalia between buyer and seller in the contract.
By default, plusvalia is borne by the seller. Some buyers try to flip it via the private contract; if you accept, ensure it is clearly drafted and reflected in the deed. Once paid, plusvalia is then deductible from your CGT gain on Modelo 210 — make sure the receipt is in the seller's name.
4. Selling as a non-resident when residency would have produced zero CGT.
A 67-year-old British retiree on the NLV, three years into Spanish residence, lived in the property as her main home — and sold while still classed as non-resident because she didn't realise residency status at deed date matters. The over-65 main-home exemption would have wiped out a €110,000 gain. Always plan the deed date and the tax-residency status together.
5. Closing the Spanish bank account too early.
Refunds from AEAT can take 12 months and arrive only into a Spanish IBAN. Close the account at the deed and you may chase your own money for two years via fiscal representatives. Keep the account open until the refund lands and reconciles.
6. Forgetting double-tax-treaty credit at home.
You've paid Spanish 19% — you almost certainly get a credit against UK/US/Irish/etc. CGT on the same gain. Notify your home tax authority and apply the treaty. The treaty does not run itself; HMRC and the IRS need the figures and the proof of Spanish payment.
11. How insurance fits in — before and after the sale
Selling a Spanish property well takes 6–18 months from listing. The asset still needs protecting in that window — and afterwards, if you stay in Spain.
Before the sale — protect the asset
Most home-insurance policies in Spain restrict cover on unoccupied properties beyond 30 or 60 consecutive days. Sellers travelling between countries during a listing window need either a holiday-home policy written for second homes (90–180 day unoccupancy windows) or a short notification to the insurer extending the standard policy. A burst pipe in February while you are in Manchester will void cover under most consumer products if the property has sat empty for 90 days. We arrange both formats — see our holiday home insurance complete guide.
After the sale — if you stay in Spain
If you are selling because you are leaving Spain altogether, the insurance ends at the sale. If you are downsizing, moving from coast to city or moving from holiday home to permanent residence on a long-term visa, your insurance brief changes. Two products in particular matter for permanent residents:
- Home insurance on the new main residence — written for the permanent-residence profile (continuous occupation, building plus contents plus liability).
- NLV-compliant private health insurance — required for the Non-Lucrative Visa renewal each year. We arrange Sanitas and Caser policies that meet the consular requirements: full cover, no co-payments, no exclusions for pre-existing conditions where required, and the bilingual policy paperwork the immigration office expects.
For sellers who are switching from non-resident holiday-home ownership to long-term Spanish residence, that health-insurance step is the most consequential single decision after the sale itself.
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Health Insurance Quote Home Insurance QuoteRelated guides and official sources
Internal — keep reading
Official sources
- Agencia Tributaria — Non-Residents area (Modelo 210, 211, 212)
- BOE — Consolidated text of the IRNR Law (R.D.Leg. 5/2004)
- BOE — Ley 35/2006 IRPF (residents' income tax, CGT bands)
- Notarios y Registradores — joint information portal
- Colegio de Registradores — Land Registry portal
- Catastro — valor catastral lookup (for plusvalia)
Frequently asked questions
What rate of capital gains tax do non-residents pay in Spain?
What is the 3% retention when a non-resident sells property in Spain?
How do I reclaim excess CGT retention in Spain?
Are over-65s exempt from capital gains tax on their home in Spain?
Do residents and non-residents pay capital gains tax differently in Spain?
What is plusvalia municipal and is it separate from CGT?
Does my UK or US tax authority credit the Spanish CGT I've paid?
Insure what you own. We'll keep it simple.
247 Expat Insurance arranges home, holiday-home and NLV-compliant health cover for expats across Spain. DGSFP-registered, English-speaking, independent — Sanitas and Caser health policies, accepted by consulates and extranjería. Quote in two minutes.
Get a Quote Talk to a PersonThis guide is general information based on Spanish IRNR (R.D.Leg. 5/2004) and IRPF (Ley 35/2006) law as at June 2026. It is not personal tax advice. Your circumstances may produce a different answer — always consult a registered gestor, fiscal adviser or asesor fiscal before a sale. 247 Expat Insurance is registered with the DGSFP under Spain's insurance distribution framework; we are insurance specialists, not tax advisers.